The Key Principles of Category Management
Over on the Purchasing Practice Academy we have launched the Category Management Master Class which was 12 months in the making. Here is a bite-size look at the key principles of category management:
Category management is founded on five key principles:
- Cross- functional team approach
- Strong supply market knowledge
- Make change happen
- Stakeholder engagement
- Facts and data based
These principles rest upon the foundation of governance, because for the implementation of category management to be successful it is important that corporate governance is strong. There are two levels governance required:
- program level, where a steering group manages the category programs .
- corporate governance, refers to the system by which companies are directed and controlled
If these factors are in place category management becomes a part of the company’s overall business strategy, and procurement can play a lead role in driving and influencing strategy.
How does your category management approach stand up?