Category Management Procurement Definition

Category management is the strategic process used to manage spend across a group of similar or related products and services. The goal of category management is to optimize spend, drive efficiencies, and improve supplier performance.

In procurement, category management is the practice of dividing spend into distinct categories, and then managing each category as a separate entity. This approach allows procurement organizations to gain a deeper understanding of the market for each category, identify opportunities for cost savings, and develop more targeted strategies for working with suppliers.

Category management is a holistic approach that takes into account all aspects of the procurement process, from supplier selection and contract negotiation to purchase order placement and payments. By taking a strategic view of spending,category management can help organizations save money, improve quality, and drive better outcomes overall.