Category management was and remains an important strategic tool in procurement to deliver sustainable value. Yet many organizations using it still don't understand it or don't benefit from it enough. Reasons cited for such failings beg an uncomfortable question: Is category management really a flawed concept, or do we just not get it? What holds category management back and what real, practical ways can add value to organizations?
A reality check
📌 The typical category strategy would take 10-12 months to create. That's nearly a year of planning before anything on the ground happens.
📌 Just 17% of stakeholders know their roles in the process. How are category managers supposed to compete when too few stakeholders appear engaged?
📌 Then comes the kicker: only 33% believe they have the capacity and technical capability to implement their category management plans effectively.
These figures are alarming, but they also show us where to focus if we are likely to reverse this trend.
A Few ways to rethink Category Management and give it another shot:
Be strategic about where you use it.
Not every category requires the same amount of attention. For routine & low-value purchases, autonomous sourcing or outsourcing to tail-spend solutions could be more efficient. Save your resources for strategic categories that pay off.
Meet business priorities.
Category management isn't a one-size fits all approach. It must fit in with broader business goals. That means collaboration, regular check-ins, and an ability to adapt plans.
Focus on individuals, not processes.
Excellent category management demands flexible professionals. Such people can build connections, articulate the value of procurement and take stakeholders along for the ride. Such talent is a win-win investment.
Don't overstretch your team.
Applying category management to everything sounds tempting, but overstretching resources can backfire. Prioritize a few core categories before scaling up and focus on demonstrable outcomes.
Leverage AI and automation.
The right tools can speed up data analysis and collaboration in category management.
Lessons from experience
My own experience shows me firsthand how category management can turn procurement into a strategic powerhouse when category strategies are developed and implemented. However, no fancy strategies worked—success was about mindset, relationships, understanding the business and focusing on long-term value rather than short-term gains. Those principles remain today.
What actually stood out then and still stands out now is how important it is to involve people. Procurement is much more than just saving dollars and drafting contracts. It is about mindset, relationships, communication and common goals. This is where the magic happens.
Looking ahead
Category management is not broken but needs a refresh. By removing common roadblocks — such as unclear roles, tight resources and lack of alignment — we can make it once again a cornerstone of strategic function. Now is the time to reimagine category management to unlock opportunities for sustained success.