Integrated Category Management: Bridging data, strategy, and execution

Procurement organizations today face a familiar but critical challenge: siloed processes that limit visibility, hinder collaboration, and delay value realization. As AI and digital transformation reshape the industry, breaking down these silos isn’t just beneficial—it’s essential.

That’s where Integrated Category Management (ICM) comes in. By aligning data, strategy, and execution, ICM empowers procurement teams to implement holistic category strategies, make smarter decisions, and drive measurable results across sourcing and supplier performance.

In our recent webinar, the (co-)Founders of Cirtuo, Sievo, and Archlet—Drasko Jelavic, Sammeli Sammalkorpi, and Lukas Wawrla—discussed with Fabian Lampe how leading organizations are redefining category management through connected technologies and collaborative approaches.

This blog distills the key takeaways from that discussion, offering practical insights into how procurement teams can embrace ICM to unlock savings, reduce risk, and future-proof procurement.

What Is Integrated Category Management?

Category management is a strategic discipline with tactical execution, Drasko explained. “Understanding and aligning business and stakeholder needs and wants with the challenges and opportunities of the market are the two building blocks of category and supplier strategies,” he said. He added that at Cirtuo, they prefer the term category strategy to category management and that category strategy encompasses the process “from the beginning to the end, including the development, validation, and execution.” 

Cirtuo provides a framework and guided process to develop category and supplier strategies. Drasko argued that too many organizations still treat category management as a checklist and a collection of tactical tasks rather than a driver of business value.

Integrated Category Management in this context means going beyond standalone strategies to create an end-to-end process that links insights, planning, sourcing decisions, supplier collaboration, and performance tracking. It's about ensuring that strategies aren't just developed—but actually executed.

“Integration is also about using data analytics at all steps of the process and having a feedback loop,” Sammeli added. "While procurement wants to and loves to plan, the world and supply chains are so volatile nowadays that part of your category strategy should focus on how you can react and adapt quickly when things change," he said. 

In addition to being able to adapt swiftly in times of change, the benefits of integrated category management include: 

• Increased Efficiency: Integrated category management streamlines procurement processes and reduces redundancies by consolidating spend within categories.
• Risk Mitigation: Integrated category management helps an organization identify and address potential risks within the supply chain, ensuring greater stability and resilience.
• Innovation and Value Creation: Integrated category management encourages collaborative innovation by fostering closer relationships with suppliers and internal stakeholders, often leading to the development of new products, services, and solutions.
• Enhanced Strategic Alignment: By aligning category strategies with broader organizational goals and making certain that these strategies are executed, integrated category management ensures that procurement activities directly support business objectives. 

Key takeaway: ICM unifies strategic intent with operational reality, leveraging data and collaboration across the procurement process.

The problem with integrated thinking, actions, and technology

Despite clear benefits, acting integrated remains elusive for many procurement organizations. The panelists outlined several reasons why:

• Fragmented or missing data prevents informed and agile decision-making. 
• Siloed systems prevent collaboration and hinder strategic planning. 
• Many teams operate reactively rather than proactively (sourcing mindset vs. a strategic mindset). 
• Sourcing decisions are often disconnected from category plans.
• Legacy systems and resistance to digital change hinder progress.
• Skills gaps in digital literacy and AI fluency hamper technology adoption. 

Drasko pointed out that the real challenge is often cultural: Many Category Managers are uncomfortable speaking the language of business and struggle to engage with senior stakeholders. Without confidence and alignment, even the best tools fall short. Lukas added, "Integration isn’t just a tech problem—it’s a process, mindset, and capability challenge."

AI is changing how Procurement engages with technology

The webinar also explored how procurement technology is evolving to support ICM.

Historically, large suite providers like Ariba and Coupa dominated the landscape, but many lacked flexibility and deep functionality. Now, the trend is shifting toward best-of-breed solutions—modular, API-first platforms that can be integrated into a broader digital ecosystem.

AI and agent-driven automation are taking this even further. From Cirtuo’s GenAI-powered strategy consultant agent to Archlet’s LLM-based sourcing scenario recommendations or Sievo’s prompt-based data interrogation capabilities, AI is transforming how procurement works and how technologies can connect with each other.

"It’s not about suite or best-of-breed—it’s about both," said Sammeli Sammalkorpi. "The future is about orchestrating workflows across multiple systems." But in the end, we need people to design and adopt those opportunities. Drasko added that while “GenAI enhances storytelling and strategy communication, real stakeholder engagement still requires a human nuance.” 

Sammeli emphasized that people are both the biggest enablers and the biggest blockers of procurement digitalization. Without aligned teams, clear processes, and stakeholder support, even the most sophisticated tech won’t deliver impact.

A roadmap for Integrated Category Management

So, what does the journey toward Integrated Category Management look like? The panelists offered a practical roadmap for overcoming the challenges and leveraging new technologies to achieve the benefits of ICM:

Centralize data: Create a single source of truth across spend, supplier, and risk data. This ensures accurate, real-time insights and reduces inefficiencies caused by fragmented data.

1. Align strategy with execution: Simplify your processes, ensure they are integrated across the organization, and that they support category strategy execution. This involves aligning procurement activities with broader business goals and fostering collaboration between departments. 
2. Identify solutions that support your vision: Choose platforms that work together across the ecosystem to enable you to meet your strategic objectives. 
3. Invest in your people: Upskill your teams to take advantage of this new approach and secure leadership buy-in to support the change. 

As Drasko put it, AI agents and digital tools may finally offer the connective tissue to make ICM a reality—but the shift must be intentional and organization-wide. “Integrated Category Management isn’t just a concept—it’s a transformation strategy,” said Lukas. “One that drives better decisions, stronger performance, and lasting value.”

Overcoming siloed technologies and activities

Procurement leaders today face greater complexity—and greater opportunity—than ever before. Integrated Category Management offers a pathway to delivering on both strategic and operational goals, but it requires a concerted effort to connect data, strategy, and execution.

Whether you're a CPO, Category Manager, or tech enabler, the time to rethink your approach is now. With the right mindset, tools, and partnerships, ICM can become the engine of procurement transformation.

Watch the full webinar on Integrated Category Management and explore how leading organizations are building smarter, connected procurement ecosystems.

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