Category strategies are plans that outline how a company purchases and manages goods, services, and related expenses. These strategies define the actions needed to achieve the objectives set for a particular category. The direction for these strategies is determined by the corporate goals of the company.
To ensure the effectiveness of these strategies, it is crucial for the category manager to align the goals and strategies of the category with the overall business goals and strategy. For instance, the overall business goals may include improving profitability, fostering innovation, or promoting sustainability. In light of recent events such as the pandemic and rapid market changes, goals like risk reduction and increasing resilience have gained greater significance for many companies.
The category manager must ask themselves: What do the corporate goals mean for the purchasing category? How can the category contribute to achieving these goals?
To initiate category work, it is important to first review the company's overall strategy and goals. These should be discussed within the purchasing function and among category teams. Additionally, the category manager should collaborate with stakeholders to understand their perspectives on the goals and establish priorities.
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