Category Management

What is Category Management?

Category Management (CM) is defined as a strategic approach in procurement wherein organisations consolidate and manage their spending across a range of goods and services. It is a cross-functional, systematic process that involves defining categories, spend analysis, market analysis, and other processes, which empowers procurement teams to structure data. CM is an easy-to-use solution that promotes collaboration with suppliers and removes the need for spreadsheets.

Categorizing internal products/services might seem tedious. But businesses that use category management have reduced their PO processing time to 6-8 hours as compared to the previous 15-18 hours. Efficient category management helps businesses identify cost savings opportunities and generate value for procurement processes.

Benefits of Category Management

1. Centralized spend data across categories and services
2. Streamlines business strategy to achieve business goals
3. Enhanced supplier risk management
4. Greater visibility of tail spend across categories