The Value of Supplier Category Management

 

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Supplier category management programs involve the strategic development, assessment, and monitoring of procurement and supplier performance in specific supplier categories. The ultimate goal of supplier category management is to establish deep relationships with suppliers to gain maximum benefit from sourcing. In its 2011 study Supplier Category Management: Driving Value Through the Procurement Organization, APQC looked at how adopting supplier category management can benefit both the procurement function and the organization as a whole.

This article identifies three organizations that have used supplier category management programs to obtain benefits that support organizational strategies.

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