Kaizen translates to “continuous improvement” in Japanese. It is a philosophy that encourages
making small, incremental changes that collectively lead to significant performance enhancements
over time. Within procurement and category management, Kaizen focuses on ongoing collaboration
with suppliers to identify ways to reduce waste, improve quality, and optimise processes. Unlike one-
off cost-reduction initiatives, Kaizen is embedded in the organisational culture and requires
engagement from all levels of the supply chain. For example, small adjustments in packaging design
might reduce material use, leading to cost savings and environmental benefits. This approach fosters
long-term supplier partnerships and supports innovation. In competitive markets, organisations that
adopt Kaizen are more resilient and adaptable, making it a key concept for category managers to
understand.
Reference: CIPS L5M6 Study Guide, p.40