Category Management

For us procurement folk, there is often a major misunderstanding around what a Category strategy stands for.

Over the course of thousands of category strategy developments we hear often; “Short term we need to e.g. perform some sourcing, resolve supply chain disruptions, sort out our quality issues. What do we need a strategy for – isn’t that something more mid or long-term?!”

This attitude has resulted in an underestimation of the importance of a category strategy, or any other strategy to resolve burning issues in the most efficient way possible.

A category strategy is determined through two key insights:

1) What are the top external or internal challenges in a category?
2) What are the top business requirements we need to address in a category?

Some “bad habits” in procurement, for example, insufficient expectations on procurement (focus on cost reductions), mismatch in competencies (sourcing & fire fighting), and failing to address senior procurement stakeholders – led to permanent frustration. For decades procurement is struggling to acquire that “seat at that table”.

Once your organization can mobilize stakeholders with the right storytelling, identify priorities, and understand true challenges and business requirements (fueled with the appropriate analysis and market intelligence), you will be able to intelligently address short-term issues.

This is why Cirtuo finds strategic work in procurement so exciting.

Turn strategic thinking into a routine

Cirtuo Guided Strategy Creation™ enables organizations like yours to develop a fresh perspective on all key categories and capture available savings while keeping an eye on every possible risk. This is precisely what our solution delivers – Cirtuo helps you get to the heart of strategic procurement. Everything you need for analyzing your categories is here: Spend Analysis, Stakeholder Mapping, Cost Drivers, Risk Management, Kraljic Matrix, Five Forces and that’s just to name a few. After you’ve skimmed all the data from categories, employ a strategy with our very own Strategic Framework for Categories and discover your winning levers.

To know your categories is to know your business.

How well do you know them?

Related articles

Cirtuo is looking forward to participating in ProcureTech’s Digital Procurement Innovation Showcase in collaboration with some of the best names in the business. The event is open to leading companies, innovative digital procurement solutions, and industry leaders.
The world of global trade is rapidly changing, and globally disrupted supply chains have created a demand for leadership that goes far beyond the boardroom. Moving away from traditional earnings reports and infinite loop roundtable discussions, the digital, increasingly agile organization relies on leadership with long-term and strategic outlooks.

Recent posts

internal analysis

The internal analysis as the foundation for holistic category strategies

Do you remember the last time you took the wrong ramp onto the highway and how it made you feel? Most people instantly know that they took a wrong turn and hope that the next exit is not too far off. Unfortunately, our brain doesn’t experience the same stress when taking the wrong turn in developing category strategies. Category strategies in Procurement are a methodical approach for defining the best way to buy goods or services for their business. Done right, they help companies align business requirements with market realities to leverage market opportunities and mitigate risks. Done wrong, they might lead us down the wrong road.