Category Management
Category management is organising procurement around groups of related goods or services, each managed with its own strategy by a specialist.
Instead of managing purchases transaction-by-transaction, category management groups similar spend — IT, packaging, facilities, logistics — and assigns each category a tailored strategy based on its market, suppliers and risk. A category manager builds deep expertise and drives value across the whole category.
The approach concentrates effort where it matters, aligning sourcing, supplier management and demand planning within each category. It underpins strategic sourcing and relies on good spend analysis to define sensible categories in the first place.
Frequently asked questions
- What is category management?
- Category management organises procurement around groups of related goods or services, each with its own tailored strategy managed by a specialist, rather than handling purchases individually.
- What are examples of procurement categories?
- Common categories include IT, office supplies, facilities, logistics, packaging, professional services and MRO — each with distinct markets and supplier strategies.
Related terms
Strategic Sourcing
Strategic sourcing is a structured, data-driven approach to sourcing that aligns supplier selection with long-term business goals rather than one-off purchases.
Read definitionSpend Analysis
Spend analysis is the process of collecting, cleaning and categorising an organisation's purchasing data to understand what it buys, from whom and for how much.
Read definitionDirect Spend
Direct spend is money spent on goods and materials that go directly into the products or services an organisation sells.
Read definitionExplore related across the knowledge graph
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