Procurement Terms



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Category Strategy

Category strategy in procurement refers to a structured approach for managing a specific category of goods or services that a company purchases from suppliers. The objective of category strategy is to optimize the value of procurement in terms of cost, quality, and risk management.

A category strategy typically involves a thorough analysis of the category, including factors such as market dynamics, supplier performance, industry trends, and regulatory requirements. The procurement team then develops a strategy that aligns with the company's overall business objectives and goals.

The strategy may include actions such as supplier consolidation, negotiation of better contracts, investment in new technologies or processes, or the development of alternative sources of supply. The procurement team will also define key performance indicators (KPIs) to measure the success of the strategy and ensure ongoing performance improvement.

Effective category strategy requires a deep understanding of the category and its specific characteristics and the ability to analyze and interpret complex data sets. It also requires collaboration with internal stakeholders and suppliers to identify opportunities for improvement and drive change.

Category Management Procurement Strategy