Procurement Category Management Definition

Procurement category management is the process of identifying, analyzing and managing spend across similar or related products and services. The goal of procurement category management is to optimize spend by consolidating spend across suppliers, negotiating better pricing and terms, and improving the quality of goods and services.

Category management is a strategic approach to procurement that can result in significant cost savings and process improvements. By taking a holistic view of spending, category managers are able to identify opportunities for consolidation, negotiation and standardization. In many cases, category management will also lead to improved quality and service levels.

Category management is an ongoing process that should be revisited on a regular basis. As markets change and new suppliers enter the market, the category manager must adapt their strategy to stay ahead of the competition.