The Strategy Blueprint
The Strategy Blueprint is a series, guiding you through the steps to developing a strong, holistic procurement strategy. Weekly publications will dive into one of the 15 modules supporting Sourcing Champion’s procurement strategy and provide insights from our procurement experts.
SP.02.Category Strategies
Category Strategies
Developing robust category strategies is critical to achieving business goals and optimizing procurement activities. Based on past cases, small and medium-sized businesses usually require 15 to 20 strategic category plans, while large enterprises may need well over 100.
The process of formulating a category strategy involves analyzing the market and its segments (Module 5), defining value contribution targets and strategy drivers for the category (Module 6), examining the procurement situation of the company in the market, identifying possible strategic levers (Module 7), and deriving a consistent strategy from the available options (Module 8).
Formulating strategies for multiple categories is a detailed and research-intensive process. Nevertheless, leveraging digital tools and AI can transform this task from challenge to competitive advantage
Digital Category Strategy Creation with the 15M Category Management Add-on
At Sourcing Champions, we are shaping the future of digital procurement with the 15M Category Management © Add-on, a forthcoming solution built for seamless integration with Ivalua and aligned with the Category Strategies pillar (SP2) of our 15M architecture. Designed to streamline the strategy creation journey, this add-on introduces a guided, modular approach to building strategies that are both data-driven and category-specific.
The platform enables a systematic and collaborative approach to category strategy. In the Analyze and Segment Categories phase (N05), the add-on provides deep transparency into each category by supporting detailed spend analysis, segmentation, supplier preferences, market research, and risk assessment. Strategic frameworks like SWOT and Porter’s 5 Forces are incorporated to break down categories into sub-categories and uncover key drivers such as cost structures and regulatory factors.
In the Define Category Targets phase (N06), the add-on facilitates the alignment of stakeholder expectations and helps set clear business objectives. These targets are translated into actionable strategy elements that ensure all efforts contribute toward overarching procurement goals.
The Analyze Levers step (N07) is a core element of strategy creation. The add-on supports the exploration of strategic options and levers, including risk considerations, to uncover high-impact opportunities for each category. This step guides users in selecting and prioritizing initiatives that strengthen competitive positioning.
Finally, in Formulate Category Strategies (N08), the add-on simplifies the development of coherent strategies and concrete initiatives. Strategic directions are clearly defined and aligned with company and procurement goals, while built-in workflows streamline management sign-off, version control, and performance monitoring. This ensures category strategies remain agile, up-to-date, and execution-ready.
By leveraging the 15M Category Management Add-on, businesses can efficiently build robust and tailored strategies for each category, supported by a dynamic structure that accommodates regular updates and reviews. With this digital solution, companies strengthen their procurement framework and position themselves for long-term success in a fast-changing environment.
Begin constructing your world-class procurement strategy.
Contact our experts for a Strategy Maturity Assessment today.
Stay tuned for next week’s issue, we’ll be exploring the third strategic partition of our 15M architecture.
