Category Management has always been a big topic in procurement. It is known to create value when done well but be criticized when it fails. Now this is the big question: Do we need full CM for every spend area OR can a more compact "Lite" version work just as well?
Let’s unpack this and figure out what really makes category management successful.
Over time CM has lost some of its shine. These days procurement conversations are almost exclusively digital transformation and supplier relationships. And while building strong supplier partnerships is important in this unpredictable world we live in; CM adds another kind of value. It involves aligning procurement strategies with business objectives so savings can be realised alongside long term benefits.
But why does it often fall flat?
The issue is not the framework itself - but how it is applied. Too thin CM in too many areas leads to a watered-down "Lite" version of CM that tries to do everything but accomplishes very little. Without focus, strategies become disconnected from business needs and stakeholders wave and say, "This doesn't work for us." The result? Missed opportunities, wasted effort & strained relationships.
Less is More!
Start small instead of deploying category management across the board. Prioritize few critical, high-impact categories and apply it fully. This approach works because:
✅You'll create deeper impact: Focusing lets you deliver full strategies with real & measurable results.
✅It aligns with business needs: Stakeholders will engage when the strategy fits their priorities.
✅It's scalable: Successful completion in key areas builds credibility that allows expansion later.
For lesser critical categories, simple solutions and practices—like strategic sourcing & automation— keep things moving and robust without draining resources.
Where Does Technology Fit In?
Procurement tech can help, but it’s not the whole answer. Platforms are great for analytics or supplier management, but CM is about people. It's about understanding markets, connecting dots and tailoring strategies work for the business.
Digital tools may also serve as supporting infrastructure - providing collaboration areas or facilitating data insights. But at the end of the day, skilled professionals are the ones who make CM work.
Now back to the question: Should full CM be applied or "Lite" approach enough?
It is smarter to go all in on critical categories first. So you use resources effectively, build stakeholder trust, set the stage for broader success and create foundation for scaling CM in the future.
This isn’t about doing less; it’s about doing better. Defining what is important to procurement teams enables category management to be a catalyst for strategic success.