Category Management, a strategic step

Day by day, the supply chain is gaining more strength within organizations due to its strategic impact on the achievement of objectives and goals.

No stranger to this challenge, many companies are migrating to the management of their procurement organized by category management, which basically corresponds to the segmentation of goods and services that meet internal customer needs and its treatment by strategic units within our area, who analyze the goods and services that make up their category in order to develop effective tactics to improve their supply and generate efficiency for the organization.

Steps for category management

It is important to take into account, among others, the following aspects in order to move towards category management:

1. To have a master of goods and services based on the needs of the company and the sector to which it belongs.

2. Generate purchase histories to perform a correct analysis of the expense, in order to make an adequate segregation of business units.

3. Determine the internal customers to be served in each of the categories determined.

4. Make a correct distribution of the equipment among the categories taking into account their profiles and specialties. The idea is for members to become experts in their subject.

5. Analyze rights and sourcing opportunities in each of the categories, in order to have a clear view between the behavior of the purchase requirements versus the market that offers the products and services.

6. Generate strategies for each category taking into account variables such as response times, consolidation of requirementsThe company's main activities include, among others, selection and negotiation modalities, suppliers in the market, among others.

7. Determine indicators that measure the behavior of this management in order to implement improvements in the weak points and strengthen the advantages during execution.

The mastery and knowledge of our operation ja strategic sourcing vision will always allow us to make the best decisions regarding the organization of our process. By taking good practices, relying on our best human resources and leveraging on the use of technology, we will obtain better results and be a competitive advantage for the organization. 

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