Global Standard for Procurement and Supply

Current segment

Level: Managerial

Theme: Spend Management

Segment 4.5 Category Management

Segment 4.5 Category Management

Knowledge: Will know and understand Capabilities: Will be able to

The main categories of expenditure that will be subjected to category management activities

Develop hierarchies of categories for both direct and indirect expenditure that can be subjected to category management and strategic procurement activities

The main models for the adoption of category management

Evaluate and apply an appropriate methodology to improve category management by standardising processes and systems across the organisation

Data typically analysed to develop a category plan

Evaluate historical and forecasted data related to categories of spend to help formulate options and make recommendations to achieve the best value outcomes

The development of a sourcing plan for the category

Create a category management plan that uses 'lots' or methods to divide the category into a range of contracts to be awarded. Manage internal stakeholders to secure support for the approach

Tools and techniques that are typically applied to map categories of direct and indirect expenditures such as;

  • Matrices for portfolio analysis and supplier preferencing
  • Supply chain mapping
  • Porter's five Forces model
  • Market share/market growth
  • STEEPLED and SWOT
  • Technology route maps  

Evaluate and provide advice to stakeholders about categories of direct and indirect expenditure

Market factors that are typically assessed in the development of a category management plan including:

  • Industry dynamics
  • Competitiveness
  • Pricing behaviour
  • Technology drivers

Develop a category management plan by analysing market factors using early market engagement/dialogue when appropriate and making use of market data to inform decision making

The soft and technical skills required for the implementation of a category management methodology

Soft skills:

  • Communication with stakeholders and suppliers
  • Influencing skills
  • Team working and cross-functional working
  • Acting as a change agent

Technical skills

  • Financial management and cost analysis
  • Supply chain analysis
  • Supply base research
  • Sourcing processes
  • Risk management
  • Negotiation

Demonstrate effective use of soft and technical skills across the organisation, and with suppliers and other stakeholders, to achieve effective category management

Knowledge: Will know and understand

The main categories of expenditure that will be subjected to category management activities

Capabilities: Will be able to

Develop hierarchies of categories for both direct and indirect expenditure that can be subjected to category management and strategic procurement activities

Knowledge: Will know and understand

The main models for the adoption of category management

Capabilities: Will be able to

Evaluate and apply an appropriate methodology to improve category management by standardising processes and systems across the organisation

Knowledge: Will know and understand

Data typically analysed to develop a category plan

Capabilities: Will be able to

Evaluate historical and forecasted data related to categories of spend to help formulate options and make recommendations to achieve the best value outcomes

Knowledge: Will know and understand

The development of a sourcing plan for the category

Capabilities: Will be able to

Create a category management plan that uses 'lots' or methods to divide the category into a range of contracts to be awarded. Manage internal stakeholders to secure support for the approach

Knowledge: Will know and understand

Tools and techniques that are typically applied to map categories of direct and indirect expenditures such as;

  • Matrices for portfolio analysis and supplier preferencing
  • Supply chain mapping
  • Porter's five Forces model
  • Market share/market growth
  • STEEPLED and SWOT
  • Technology route maps  
Capabilities: Will be able to

Evaluate and provide advice to stakeholders about categories of direct and indirect expenditure

Knowledge: Will know and understand

Market factors that are typically assessed in the development of a category management plan including:

  • Industry dynamics
  • Competitiveness
  • Pricing behaviour
  • Technology drivers
Capabilities: Will be able to

Develop a category management plan by analysing market factors using early market engagement/dialogue when appropriate and making use of market data to inform decision making

Knowledge: Will know and understand

The soft and technical skills required for the implementation of a category management methodology

Soft skills:

  • Communication with stakeholders and suppliers
  • Influencing skills
  • Team working and cross-functional working
  • Acting as a change agent

Technical skills

  • Financial management and cost analysis
  • Supply chain analysis
  • Supply base research
  • Sourcing processes
  • Risk management
  • Negotiation
Capabilities: Will be able to

Demonstrate effective use of soft and technical skills across the organisation, and with suppliers and other stakeholders, to achieve effective category management

This segment was last updated on: 24th May 2021

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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