Category Management - Meaning and Importance
What Is Category Management?
Category management is a strategic approach to procurement which involves grouping similar products or services into a single category. After that, for all practical purposes, that category acts as a representative for all products listed therein. Category management assists with operations: sales, procurement, product lifecycle management, and merchandising. The main objective of category management is to develop a category strategy and continiously monitor and review it to optimize procurement processes.
It further helps streamline the procurement process and buyer/supplier relationships. While many businesses employ category management as a standalone activity, it is most beneficial when combined with product lifecycle management activities.
Product categories under category management can be defined by the business based on several parameters.
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