Category management is a strategic procurement approach organizations use to effectively manage their spending across various categories of goods and services. It involves analyzing and segmenting the organization's spending into categories and then developing and implementing procurement strategies for each category.

Category management aims to optimize the procurement process by identifying opportunities for cost savings, improving supplier relationships, and enhancing the quality of goods and services acquired. This approach enables organizations to focus on each category's unique characteristics, such as supply market complexity, supplier base, and demand patterns, to drive better outcomes.

Category management typically involves a cross-functional team of procurement professionals, business stakeholders, and subject matter experts who collaborate to develop and execute the category strategy. This approach allows organizations to align their procurement objectives with broader business goals.