Category Management and Strategic Sourcing

What are Category Management and Strategic Sourcing?

Category Management is a strategy wherein the array of products and services purchased by an organization is strategically managed in groups of similar or related products and services. Strategic Sourcing is the collaborative and structured process of critically analyzing an organization’s spending and using this information to make business decisions about acquiring commodities and services more effectively and efficiently.

Category Management

 

How does the Category Management process work?

The Office of Management and Budget (OMB) has tasked the Category Management Leadership Council (CMLC) with implementing Category Management on a Government-wide level.  The process flow is outlined in the diagram below.

Category Management

 

What are the ten super categories of the Category Management Initiative?

The following diagram outlines the Government categories and their share of the FY 2014 Government spend in billions.  Please note that the Defense-Centric Categories are not currently included in the CMLC effort: 

Category Management

Last Modified On: Jul 19, 2016