What is Category Management?

Category Management is a strategic approach aimed at organizing procurement resources to focus on specific areas of spends. This approach involves segmenting the spend into categories which are goods or services that are similar or related to the market they serve. The categories are then managed as a portfolio of business-led projects. Category Management allows for deeper understanding and strategic management of spend leading to enhanced performance and competitiveness.

IBM, for example, has been successful in reimagining its procurement systems by leveraging advanced technologies like AI and Blockchain to streamline and automate their procurement processes. This has led to increased efficiency, reduced costs, and improved supplier relationships.