Category Management

Category Management is all about grouping similar items together, enabling buyers to focus their time and resources on specific areas of spend.  Segmentation and sorting of data regarding past and current spend for a particular category reveals trends that can be helpful in the creation of a procurement project’s strategy.  By choosing suppliers that cover a whole category rather than just a couple of individual items, there is more leverage when negotiating terms and prices.

A simple example is stationery – you have 10 departments within your business, all buying staples from different suppliers at different prices; that’s 10 different staff members using their time to buy the same thing.  As the suppliers are just providing that one item, they push up the prices.  However, if the purchasing is done centrally by one person for all departments and all stationery items, potential suppliers will be more likely to provide a competitive proposal.  Supplying a whole range of stationery to the entire business is more attractive to them than a few boxes of staples to a single department.  You’re also saving staff resources by having just one person dealing with it all!

Some areas covered in Category Management training are:

  • principles of category management
  • defining your areas of expenditure
  • gathering historical and current spend data in order to provide important insight into the category
  • how to implement Category Management in your business
  • how to use Category Management to maximise the return to your business in terms of cost reduction, supplier development and risk reduction
  • planning and developing your strategy for Category Management
  • assessing costs and benefits

Take a look at this presentation to find out more! Click on the picture to open in a new tab.

As with all of our courses, we’re happy to look at how we can tailor to your specific needs, ensuring you get the best possible results.

If you’d like to discuss how Category Management can help your Business, get in touch here.