In many organizations, category strategies are created out of necessity rather than design. They often sit in static documents, disconnected from business planning, and are rarely revisited. The result is that procurement becomes reactive. It chases requests, negotiates under pressure, and misses the opportunity to influence decisions before they are made.
Category strategy should not be an output, but rather a leadership tool. When embedded into how the business plans and sets priorities, a well-crafted category strategy positions procurement to drive meaningful value.
The absence of a strategy limits procurement’s impact
Procurement teams often face similar challenges: limited visibility, compressed timelines, and low influence over early-stage decisions. In most cases, these are not sourcing-specific issues, rather, they are symptoms of a larger problem: procurement was not engaged early enough in the planning process.
Without a forward-looking strategy:
- Teams react to demand rather than help shape it
- Supplier engagement is delayed, limiting both leverage and innovation
- The business sees procurement as a service function, not a strategic partner
These outcomes are not corrected through more process. They are addressed through better planning and communication.
Three ways to make category strategy a driver of positive results
Effective category strategies are built early, informed by data, and translated into action plans. To achieve this, there must be a focus on three foundational steps:
A. Engage during business planning
Category leaders need to be involved where decisions take shape. This includes financial planning, product road mapping, and operational reviews.
- Gain early visibility into demand drivers and budget priorities
- Identify sourcing risks and opportunities before timelines are set
- Build alignment with key stakeholders through shared goals and transparency
B. Move beyond backward-looking information
Many strategies focus on spend analysis alone. A more strategic approach incorporates supplier performance, market dynamics, and future-state business needs.
- Evaluate supplier concentration, risk exposure, and cost structures
- Use external benchmarks and market intelligence to inform direction
- Prioritize categories where sourcing decisions will move the needle
C. Translate strategy into a practical roadmap
A strategy has to do more than diagnose. It must define what actions procurement will take and when and how success will be measured.
- Sequence initiatives based on complexity, value, and business readiness
- Set criteria for supplier selection that aligns with the primary business objectives
- Create a living, breathing plan with milestones, decision points, and accountability
What great looks like
When strategies are developed collaboratively and reviewed on a regular cadence, procurement gains influence. The function becomes faster, more aligned with the business, and better positioned to deliver value beyond just the cost metric. As a result, the business views procurement as a trusted advisor rather than an administrative cost center.
Argon & Co works with clients to design practical, insight-driven category strategies that connect directly to the enterprise’s goals and objectives. Our approach combines deep analytics, significant stakeholder engagement, and rigorous execution planning that produces a well-rounded strategy that drives actionable results.
Reach out here if we can help you become a catalyst for positive change in your organization.
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