Category Management is a strategic approach to procurement where organisations segment their spend into areas which contain similar or related products enabling focus opportunities for consolidation and efficiency.
What is category sourcing strategy?
Category Sourcing is the process of sourcing a category designed to be treated as a business unit. It is generally treated as part of the category management process. You also have to focus on the procurement, the logistics, the inventory management, and the accounts payable.
What are the 5 procurement categories?
Middle level – there are 5 procurement categories:
- Administrative support.
- Travel.
- Professional services.
- Insurance.
- Information technology.
What are the procurement categories?
Public Procurement Categories
- In Public Procurement there are generally three procurement categories: goods, works and services.
- Goods are physical products purchased or manufactured on request .
- Services are classified as consulting services and non-consulting services.
What should a category strategy include?
No standard criteria exist within the profession for evaluating categories, but organisations have been known to use a combination of topics which include:
- Size of spend.
- Strategic importance.
- Market difficulty.
- Volume and variety of stakeholders.
- Variety and uniqueness of Business Requirements.
- Time available.
What are the main categories of procurement?
Categories and Commodities
- Buying Commercial and Professional Services.
- Energy and Water.
- Chemicals.
- Construction and Engineering.
- Facilities.
- Financial Services.
- IT and Telecoms.
- Logistics / Freight.
What should a procurement strategy include?
An ideal procurement strategy framework will include the following:
- Strategy statement: the basis and rationale.
- Desired results: deliverables.
- Timeframe: deadlines.
- Tactical plan: how a strategy will be implemented.
- Measures: metrics used to evaluate the process.
