Category Management is a strategic approach to procurement. According to CIPS, it is defined as “a
rigorous fact-based, end-to-end process for proactively collaborating with stakeholders to develop
and implement sourcing strategies that deliver significant value from an organisation’s external
spend.”
Unlike tactical or reactive procurement, which focuses on immediate needs or firefighting, category
management emphasises long-term planning, data analysis, supplier relationships, and alignment
with business objectives. It goes beyond simply planning purchases in advance [which could apply to
“planned procurement”] by integrating market intelligence, risk assessment, and value optimisation.
Being strategic means that category management seeks not only cost savings but also innovation,
sustainability, and resilience. It requires cross-functional collaboration and the use of analytical tools
like Kraljic matrices, total cost of ownership, and supplier segmentation.
Therefore, the most accurate categorisation is strategic procurement, not merely tactical or planned.
[Ref: CIPS L5M6 Study Guide, p.2 – Category Management as a strategic approach]
