category management

Smash Sourcing Silos with Category Management

Smash Sourcing Silos with Category Management

SIG University Certified Sourcing Professional (CSP) program graduate Silver Chaudry discusses how category management takes sourcing initiatives out of silos to create shared objectives and continuous processes across business units that drive efficiency.


Category management is a strategic and collaborative approach to procurement involving the segmentation of related goods and services to proactively manage and consolidate spend, track savings and identify areas of improvement. Category management was first developed in the 1980s, evolving from strategic sourcing but differing as it is an end to end process where the analysis is continuously refreshed to keep up with changing market trends. (Strategic sourcing was typically reactive in nature, conducted for immediate requirements and taking place as a one-time event.) Category management also places emphasis on supplier development, where category managers work closely with suppliers to foster innovation and achieve superior outcomes.

>>Get the Guide to Understanding Category Management<<

Silver Chaudry, Sourcing Manager

Procurement KPIs: The Keys that Unlock the Value of Spend and Supply Management - Part 3

Procurement KPIs and Spend Management

In part one and part two of this KPI series, we highlighted some of the foundational measurements for procurement pros and the problems of traditional procurement key performance indicators in terms of how they can be incomplete, misleading and even damaging to a value chain transformation.

So how do you get from tactical procurement metrics to more powerful spend/supply measures that help build new capabilities and favorably impact critical business outcomes?

We have mentioned some of the more expansive sets of metrics that organizations use to measure several areas:

●      Spend/cost management and savings

●      Supplier/supply performance

●      S2P process metrics for process performance

●      Underlying capabilities in talent management, digital, etc.

●      Stakeholder-specific metrics related to the above

In this third installment, we’ll dive a little deeper into some example metrics, but the first order of business is to provide a framework giving the backdrop on the KPIs and use it to hone in on metric types before listing individual KPIs.

Pierre Mitchell, Chief Research Officer, Spend Matters

Lessons in Vendor and Category Management

vendor relations and category management

SIG University Certified Sourcing Professional (CSP) program graduate Diane Bradley discusses how CSP modules on vendor relations and category management improved her vendor management and negotiation skills.


I would like to start my essay by saying "thank you." BNY Mellon has invested in its employees and is providing us with this training. I feel that is something that should be recognized, and I do appreciate the opportunity to expand my knowledge, which will ultimately increase my value with the bank. With that said, the SIG University training has provided me with a lot of valuable information and has also given me guidance, which I have started applying in my day-to-day activities

I feel the units focusing on vendor relations have been extremely helpful. As I continue to negotiate more and more contracts, I have reminded myself to go into the call with my goals established and I have them written down in bullet points, so they are easy to refer to while on calls. I have also made sure to have internal calls with the stakeholders prior to reaching out to the vendor. So when the call is conducted, I am confident that we are on the same page and present a consistent and concise dialogue. I feel this preparation has given me confidence, and I strongly feel that it is represented in the call. I am also very focused on the partnership that we are building with our vendors.  I realize I am an essential aspect of the partnership.  My dealings with the vendor will make a significant impact on the success or failure of the relationship. 

Diane Bradley, Global Procurement, BNY Mellon

SIG Speaks to Alpar Kamber, Corporate Executive Vice President & Head Procurement Services, Denali-WNS

Alpar Kamber is the Head of Procurement Services at WNS

What is your role and your day-to-day responsibilities?

I am head of WNS’ Procurement Services Business Unit. We support procurement organizations globally across all industries. In my organization, there are over 3,000 procurement professionals in 53 locations across the globe. We touch over $85 billion in spend globally and provide a wide range of services. Clients partner with us to operationalize their procurement function and improve financial performance and efficiency.

My responsibilities are broad, I spend most of my time running our business, engaging my team, focusing on building a stronger organization, meeting with clients and industry leaders, and solutioning. But I am always happy to roll up my sleeves and jump into any project. I am passionate about expanding procurement’s influence and helping our clients boost their performance.

Twelve years ago, I started Denali Sourcing. As a procurement professional myself, I know what our clients face daily. I’ve been asked to deliver on similar mandates and create value for the business that goes beyond cost savings. I founded and grew Denali Sourcing Services into a leading global procurement services organization and then joined WNS as part of our acquisition in 2017. In my current role, I work with a larger and more global client base. The evolution of the last decade has proven to me the significance of the value that procurement adds to the business, regardless of industry. I’ve always known that procurement was a huge value-driver, but I needed time to prove it.

Now, I am helping procurement organizations think about ways to transform operating models and enhance the procurement ecosystems across our entire client base. This includes helping companies with any of the following:

Stacy Mendoza, Senior Marketing Manager

Utilizing Soft Skills to Navigate Change Management

Kimberly Morelli discusses how essential components such as soft skills and change management can be.

SIG University Certified Sourcing Professional (CSP) program student Kimberly Morelli works at Driven Brands. She shares how essential components such as soft skills and change management can be and how she is implementing newly polished tools and best practices to tackle organizational challenges.

In the CSP program, students focus on the hard and soft skills of sourcing, including strategic sourcing and outsourcing methodologies, as well as best practices in negotiations.


My enrollment in the CSP Program from SIG University has proven to be timely and I am excited at the opportunity to have lessons that can be readily applied to our procurement organization. I also was heartened to find emphasis by SIG on positive supplier relationships versus an adversarial stance as used to be popular. The procurement team I am on has been in a state of transformation over the past few years, shifting from transactional buying to category management with a specific focus on increasing our sourcing processes. I found the CSP program to have laid a strong framework that is applicable to my organization, both in procurement and business areas.

Kimberly Morelli, Senior Category Manager

Talking to Your Tail Spend – Chapter 4: Frameworks to Manage and Find Savings

Find savings and learn how to build a strategic sourcing framework to help you manage tail spend.

This is the final chapter in our tail spend series and we’ve covered some significant ground to understand what tail spend is, why it happens, and the potential issues with ignoring it or managing it in the wrong way. In this final chapter, we'll explore the ways you can find savings in your tail and how to build a strategic sourcing framework to help you manage it going forward.

To get up to speed, you can read the entire Talking to Your Tail Spend series on our blog:

Amy Fong, Principal - Procurement and Purchase to Pay Advisory, The Hackett Group

Talking to Your Tail Spend: Chapter 1 – Why don't you call me by my real name?

In this blog post, tail spend is defined as unmanaged spend.

We’re releasing a series of articles to answer your questions about tail spend, starting with the basics to help you understand what tail spend is and progress along the spectrum to help you manage it. To get up to speed, read our prologue on what this tail spend series will help you accomplish


The term “tail spend” has become a common term in procurement-speak because in our minds we like to visualize all of our spend fitting on a nice curve with suppliers on the X-axis and spend per supplier on the Y-axis, something like in Figure 1 below. The suppliers with the lowest spend are plotted to the right and we think of that as the tail. A shorter tail implies we’ve done a better job of consolidating our spend among fewer suppliers. Since supplier consolidation with the goal of cost savings was the raison d’etre of early sourcing groups, the shape of this curve feels like an indicator of success.

Typical Spend Curve with a Long Tail

Amy Fong, Principal - Procurement and Purchase to Pay Advisory, The Hackett Group

4 Things to Know Before you Launch a Category Management Program

An image of white paper airplanes flying in the same direction with one red paper airplane veering off course.

A category management program can put your organization on a path to achieve better outcomes, experience greater savings and result in an increased focus on collaboration and innovation. But launching a category management program is not just as simple as flipping a switch.

In our blog post, The Guide to Understanding Category Management, we provided you with a template to develop a business case for category management in a specific spend category and noted that category management is not to be confused with strategic sourcing, although it evolved from the overall strategic sourcing approach.

Before we jump head first into creating our category management program, there are some important considerations to take into account. The Hackett Group (Hackett) and GEP recommend addressing the following four critical needs for an effective program, which are summarized below.

>>Click here for everything you need to know about achieving greater value with a global category strategy.

#1: Create an organizational design to best meet the needs of procurement and the business.

Getting visibility into spend analytics is one of the first steps to implementing a successful and sustainable category management program. Then, with your spend data in place, you can begin to develop your category management plan.

Stacy Mendoza, Senior Marketing Manager