When recruiting a new member to the procurement team, like a Category Manager, what skills and experiences are you looking for? 

The list of requirements and experiences can be quite long when a procurement manager start to brainstorm. Probably the manager want someone who can be up and running in a short period of time, know the supplier market in the category in question, know the related technologies and can drive change using the cross-function approach within the category management concept. 

Examples of requirements listed.

Here are some real life examples of a companies searching for a Category management. Let’s start with an indirect category and focus on the individual requirements:

Example 1:

We’re looking for the candidate who has:

• Previous strategic sourcing experience
• Knowledge of indirect categories (preferably, Logistics Services, MRO, Service Contracts)
• Ability and willingness to work on a group level with multiple operation companies
• Experience of working in a matrix organization
• Fluent in both English and Swedish

Example 2:

A direct category…:

• Proven work experience within plastics, such as foam converting, foam molding, thermoforming and protective foam extrusion
• Proven work experience in category management as well as project-based sourcing
• Experience in manufacturing, quality, or sales are considered a plus.
• Strong negotiation skills – can persuade others, foster a collaborative atmosphere both with internal and external stakeholders during negotiations and reach positive agreements
• Takes broad perspectives and considers long-term consequences, ability to understand and analyze market data and market trends
• Ability to identify potential risks and monitor the financial impact of own activities
• Target-oriented and focus on reaching results effectively
• Self-directed, takes initiative, makes things happen and accepts responsibility for the results
• Strong communication skills, ability to make effective and persuasive speeches and presentations
• A team player with collaborative and networking skills
• Ability to provide the team with a clear sense of direction and ability to keep them focused on objectives
• Ability to understand technical drawings and specifications
• …..and more. 

It would be interesting to hear your opinion but my experience is that it is close to impossible to tick all the boxes. But it is a wish list and a guidance to the person considering to apply. In both cases above Procurement experience/category management experience are listed in the very top of the list. Probably because it is a procurement function which recruit and one starts where one’s home is. 

My customer took a different approach and started with product- and market knowledge and people skills (ability to energize and drive change), and assumed the procurement manager and training can build the procurement skills, when recruiting a category manager. 

Different path when recruiting a Category Manager

Since a Category Manager role is strategic and a manager role that drive change, the individual capabilities and experiences are more important than “knowing what category management is“. If you want break-through thinking and attention at stakeholder side, market and product understanding are more important than being able to follow a category management process.

That is why the customer chose to recruit a CTO from a specialist company in the market and requested Learn How to Source to support with a training program to build the procurement and category management skills.

In the complex and nuanced world of procurement, the role of a category manager is pivotal. This position demands a deep understanding of the category, its products, and the intricacies of the supplier market. While strong buying experience is undoubtedly valuable, I argue that a profound knowledge of the category and its supplier market is more crucial for a category manager. This assertion rests on the belief that, with business acumen and strategic thinking, the necessary procurement vocabulary and processes can be effectively learned through training.

The Essence of Category Knowledge

Category management is not merely about procurement; it’s about becoming a subject matter expert in a specific domain. This expertise enables a manager to make informed decisions, foresee market trends, and identify opportunities for innovation and cost reduction. Knowing the category inside out allows for a strategic approach to sourcing, one that transcends transactional buying and delves into the strategic development of the category itself.

Understanding the Supplier Market

Similarly, an intimate understanding of the supplier market attached to a category is indispensable. This knowledge facilitates more than just the identification of potential suppliers. It enables category managers to understand the dynamics of the market, including competitive landscapes, technological advancements, and potential risks. This insight is crucial for strategic planning, negotiation, and building resilient supply chains.

The Role of Business Acumen and Strategic Thinking

Business acumen and strategic thinking are foundational skills that enable individuals to quickly grasp and apply new concepts, including procurement vocabulary and processes. A candidate with these skills can easily be trained in the specific methodologies and best practices of procurement. These competencies allow for the application of strategic frameworks to procurement activities, ensuring that purchasing decisions align with broader business goals and strategies.

Training in Procurement Vocabulary and Processes

While the specifics of procurement can be complex, they are fundamentally a set of learnable skills and practices. With a solid foundation in the category and its supplier market, along with strategic thinking and business acumen, a new category manager can quickly assimilate the necessary procurement vocabulary and processes. Training programs and on-the-job learning can effectively bridge any gaps in this area, allowing the manager to apply their deep market and category knowledge within the procurement context.

Learn How to Source competence model

In the course “Introducing the Procurement area and Learn How to Source” the LHTS competence model is introduced. The course present the required knowledge for a professional buyer in an aggregated and understandable way and share light on how a purchasing manager can find more sources for his/her future staff.

CTO got basic understanding of the procurement area and category management via LHTS program

In conclusion, while buying experience has its merits, it is the in-depth understanding of the category and supplier market that truly defines the effectiveness of a category manager. This expertise, combined with business acumen and strategic thinking, forms the cornerstone of successful category management. It enables not only the efficient execution of procurement tasks but also the strategic development of the category in alignment with business objectives. As such, when recruiting for a category manager, priority should be given to candidates with strong category and market knowledge, as the nuances of procurement can be taught, but strategic insight and market expertise cannot easily be replaced.

Learn How to Source have an individual 10-week program that provide the essentials within Procurement as well as senior mentorship during the program. Learn more about the Basic certification course from Learn How to Source. The program is remote and combine online lectures with web-meetings. 

About Learn How to Source

Learn How to Source (LHTS) is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and includes quizzes and certificates. They can be accessed from any device, emphasizing micro learning for flexibility and efficiency. Hope you have enjoyed the blogpost Conflict minerals in the supply chain influence procurement.

Note: Illustration to the blogpost “Category manager – how to recruit – Case” is created by CHAT GPT on March 4, 2024.

Utbildning Inköp will provide you with information about LHTS courses in Swedish.