spend categories

4 Things to Know Before you Launch a Category Management Program

An image of white paper airplanes flying in the same direction with one red paper airplane veering off course.

A category management program can put your organization on a path to achieve better outcomes, experience greater savings and result in an increased focus on collaboration and innovation. But launching a category management program is not just as simple as flipping a switch.

In our blog post, The Guide to Understanding Category Management, we provided you with a template to develop a business case for category management in a specific spend category and noted that category management is not to be confused with strategic sourcing, although it evolved from the overall strategic sourcing approach.

Before we jump head first into creating our category management program, there are some important considerations to take into account. The Hackett Group (Hackett) and GEP recommend addressing the following four critical needs for an effective program, which are summarized below.

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#1: Create an organizational design to best meet the needs of procurement and the business.

Getting visibility into spend analytics is one of the first steps to implementing a successful and sustainable category management program. Then, with your spend data in place, you can begin to develop your category management plan.

Stacy Mendoza, Digital Marketing Specialist