University of Twente Student Theses


From Portfolio to Lever: Evolution of Category Management

Rotmensen, J.G. (2023) From Portfolio to Lever: Evolution of Category Management.

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Abstract:Many scholars advocate for category management as a fundamental method for firms to capitalise on diversified purchase strategies. Nonetheless, there is a discernible disparity between the theoretical underpinnings of category management and its practical implementation. Therefore, this research aims to explore the category management execution by purchase professionals. Literature review reveals several steps to conduct a category strategy, multiple portfolio models, and a few sourcing lever methodologies for category management. This research draws on expert interviews to understand the practical implementation of category management. The findings indicate that almost all professionals do an internal and external analysis and subsequently develop their category strategy. The importance of the stakeholders’ input during the process is widely emphasised. Despite all the criticism and other introduced purchase portfolio models, the Kraljic Matrix is still widely present and used in purchasing as an effective communicating tool. Furthermore, advanced firms start to systematically interpret sourcing levers theory in their category strategy development process. Additionally, using the insights from the professionals, a new approach to reach a category strategy is developed. This new approach draws on the Kraljic matrix, to subsequently select sourcing levers and focus on the required internal or external analysis to deploy the strategy.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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