Although some organisations mistakenly use Category Management and Strategic Sourcing

interchangeably, they are not the same. Strategic Sourcing is a philosophy or approach to

procurement, while Category Management is a structured process, applied most effectively through

recognised frameworks like Kraljic or Kearney’s 7-step model. Category Management is strategic, not

tactical, and focuses on long-term value creation, supply market management, and alignment with

organisational objectives. A direct quote from L5M6 states: “Category Management is a process and

is applied most effectively when using a recognised framework and supporting tools.” This clarity

ensures that organisations do not reduce Category Management to short-term sourcing exercises.

Instead, it emphasises cross-functional collaboration, innovation, and market analysis to achieve

sustainable value.

Reference: CIPS L5M6 Study Guide, p.49