Does it make sense to present a Category strategy as an online course? Well, since a category strategy is unique to each company (organization), the answer must be no. Or….?

You can certainly buy courses teaching principles of category management and category specific “tricks of the trade” as you will find examples of below. Let us take the question one step further.

What is a Procurement Category Strategy?

A procurement category strategy is a comprehensive plan that outlines how to manage and procure a specific category of goods or services in a way that maximizes value for an organization. It goes beyond mere purchasing to encompass a full understanding of the category’s supply market, the internal needs of the organization, and the external factors that could impact the supply chain. This strategic approach aims to optimize costs, ensure quality, mitigate risks, and enhance innovation and sustainability within the category.

A category strategy is the story the category manager uses to get all stakeholder onboard. A category strategy assures the sourcing activities and current/future supply chains are aligned with the company/procurement strategy. Learn more about Category management in EFFSOs course.Collect further knowledge in the course Category Management – how to get started, an advanced course helping you with the first steps when implementing Category Management. The course include a broader explanation of Category management, the content of a first version of a Category strategy and key finding (checklists).

A well-defined procurement category strategy is critical for organizations looking to optimize their procurement function. It enables procurement specialists and category managers to make informed decisions that contribute to the overall efficiency and competitiveness of the organization. By taking a strategic approach to procurement, organizations can achieve significant cost savings, improve supplier relationships, enhance product quality and innovation, and ensure a stable and sustainable supply chain.

How to develop a Category Strategy?

1. Category Profile: This involves a detailed analysis of the category, including the types of goods or services, the volume of spend, and the criticality of the category to the organization’s operations.
2. Market Analysis: A thorough examination of the supply market for the category, including trends, key suppliers, competition, and potential risks or opportunities. This analysis helps in understanding the external factors that can impact pricing, availability, and innovation.
3. Internal Needs Assessment: Understanding the specific needs, preferences, and consumption patterns of the organization regarding the category. This includes current usage, future needs, and any specific requirements or constraints.
4. Spend Analysis: A comprehensive review of historical spend within the category to identify spending patterns, areas of high spend, and opportunities for cost savings or process improvements.
5. Supplier Assessment: Evaluating current and potential suppliers based on their capability, performance, financial stability, and alignment with the organization’s values and sustainability goals.
6. Risk Management: Identifying potential risks within the category, including supply chain disruptions, market volatility, and compliance risks, and developing strategies to mitigate these risks.
7. Strategy Development: Based on the insights gained from the above elements, developing a strategy that outlines how the organization will manage and procure the category. This strategy may include cost reduction initiatives, supplier consolidation, contract renegotiation, investment in innovation, or sustainability practices.
8. Implementation Plan: A detailed plan for executing the category strategy, including timelines, responsibilities, and performance metrics to monitor progress and success.
9. Continuous Improvement: Regularly reviewing and updating the category strategy to reflect changes in the market, organization’s needs, or supplier performance. This ensures the strategy remains relevant and continues to deliver value.

Can you buy a Category strategy as an online course?

Each company has a unique relation to a specific market, the key characteristics of the market is still the same for all buyers. In every given moment the suppliers are the same, market trends and new technologies are the same. But now you are thinking, we got all that now, we can buy a market report from Gartner or any other company. Yes, that is true and you are right. 

But there is always tricks of the trade, ways to address the market, successful models used to address the market. You find multiple examples in the Real Life Buyer podcast about procurement of IT- Hardware with Phil Hill.

There is a range of procurement consultancy companies which offer category specific knowledge. Companies like EFFSO (management consulting), Efficio (sectors) and Future Purchasing (category experts) provide management support when organizations take on or challenge a new category. Bringing onboard a management firm will certainly give you head start. Even though the delivery will come with a hefty price tag, the value created will in most cases bring a positiv business case. 

Dave Barr (Real Life Buyer) has created an online course addressing Contractors. The course Sourcing & Appointing Contractors by Dave Barr provide category specific knowledge. By applying the actual process and methodology discussed in the course the buyer will be able to move forward with confidence and at pace to deliver high quality services to your business from competent and qualified contractors in an organized and controlled manner. Dave’s course serve as a good example how one can get an head start when addressing a new category using an online course.

Number one key success factor when implementing a category strategy

One key success factor in implementing a procurement category strategy is stakeholder engagement. Engaging stakeholders throughout the development and execution of the category strategy is crucial for its success. Stakeholders include anyone who has a vested interest in the procurement process and outcomes, such as internal users and department heads.

Should you buy Category strategy as an online course?

When taking the taking the checklist 1-9 above in consideration, and understanding the key success factor is stakeholder engagement, it it safe to say getting a category strategy as an online course (of the shelf in) is not plausible. What a procurement online course can add is relevant knowledge about category management terms and procedures, assuring the full category team have a common ground to stand upon. Also, specific knowledge about a category, like Daves course Sourcing & Appointing Contractors by Dave Barr, provides additional expertise in an efficient way. 

Successful Category Management start with having the full cross functional category team work through step 1-9 above and own the goals, as well as celebrate the result, together. 

No, do not buy a Category strategy as an online course!

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 include quizzes and certificates. They can be accessed from any device, emphasizing microlearning for flexibility and efficiency.

Note: Illustration “Category strategy as an online course”, is created by CHAT-GPT on February 6, 2024.