Category Management Toolkit: Categorisation and Category Analysis†
What is Categorisation and Category Analysis?
Categorisation allows you to prioritise your activities and to approach the market in an efficient and manner that they will understand. By implementing a market facing categorisation structure, the organisation will be able to achieve optimum value from the supply market.
Category analysis is the development of a detailed understanding, through high quality data collection and interpretation, of the products or services that make up the category. This focus on the category will complement business requirements analysis, which assesses the needs of the business in relation to the category or sub-category.
Where does it fit within Category Management?
- Gathering Category Information
- Strategic Analysis and Generation of Options
What is included in this guide?- Categorisation & Categorisation Systems- Categorisation Terminology- Categorisation Analysis
(Categorisation and Category Analysis Summary)
One of the early stages of Category Management – whether you are considering an organisation’s overall spend or a particular category – is the process of categorisation. This involves creating a hierarchy of items and assigning the organisations spend to that hierarchy.
Categories consist of items of:
- Similar supplier sources
- Similar production processes
- Similar internal use
- Similar material content/complexity
- Similar specifications
- Similar product technology.
(Categorisation and Category Analysis)