In the procurement area, the term can be used in two ways: as a description of the procurement process, or as a basis for organising the procurement team. As a description of the procurement process, category management involves applying the end-to-end procurement process to a specific range of goods or services. This involves all the pre-award processes such as category analysis and demand management, sourcing and contract negotiation, as well as the post-award processes such as performance management. As a basis for structuring procurement resources category management usually involves defining the need, sourcing the market, negotiating the contract and managing the providers after the award. In order to ‘scale the role’ so that different categories represent approximately equal challenge, three key factors are considered: the value of spend in each sub-category, the diversity of the sub-categories and the challenge in the supply markets. See also Category and Procurement.« Back to Glossary Index
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.