Category Management 4.0: Integrated, Agile and Value-driven
- Lauri Vihonen
- Apr 15
- 5 min read
I’ve had the privilege of training over 200 organizations in procurement leadership – especially in the development and implementation of category management. I’ve written several blogs about the use of data, the most common pitfalls in category management, and the increasing importance of speed and understanding in achieving procurement impact. This article is based on the observations I’ve made in various client projects and development initiatives across industries.
If you are responsible for procurement, its development, or managing categories – and you feel that category management isn’t delivering its expected benefits, that category teams aren't operating effectively, or that progress seems to be stuck – then this article is for you.
"Category management has evolved – and it must continue to evolve."
Traditional category management models often rely on static planning, annual calendars, and standardized processes. But reality looks different: change is fast, uncertainty is constant, and the business environment is accelerating. Category management must not become a "good-times hobby" – it must be a flexible, real-time, and value-creating leadership model.
🔧 A new way to see category management: Integrated, Agile and Value-driven
Category Management 4.0 is not a new method – it’s a new way to think, structure, and execute category management. It’s built on four core principles:
Integrated: Category management is not a silo – it’s embedded into business, strategy, values, and daily operations.
Agile: Plans evolve. Strategies adapt. Teams respond.
Iterative and learning-driven: Categories are developed in short cycles through MVP and pilot thinking.
Three-phase execution: Value-driven category management is built on smart data use, responsive planning, and adaptive execution.
👉 Read the blog: “Developing Procurement – How to Get Started and Integrate Procurement into Everyday Operations?"
🎯 Why it matters – What are the benefits of Category Management 4.0?
Modernized category management helps organizations to:
Respond faster to market changes – with plans and decisions that adapt to situations.
Create value continuously – not just once a year through an annual strategy.
Engage business stakeholders – cross-functional teams and agile execution align expertise and ownership.
Improve supplier collaboration – co-development and piloting replace rigid negotiation cycles.
Support sustainability goals in practice – decisions are guided by data, KPIs, and sustainability impact.
This is not just fine-tuning existing methods – it’s a shift toward a more value-driven and future-ready approach to category leadership.
In this blog, I introduce my perspective on Category Management 4.0 – a model that complements traditional category thinking and meets the needs of today’s dynamic business environment. At the heart of the model are three core phases: data, plan, execution. Together, they form an agile, integrated, and truly value-driven approach.
🔍 1. DATA – See, understand and anticipate
Data is no longer just a backward-looking reporting tool. It’s the backbone of decision-making – provided it is accurate, timely, actionable, and well understood.
📌 Key shift: "There is no longer a single dataset to rely on. There are often dozens of data sources – varying by category, situation, and project. The ability to combine and interpret fragmented data is critical."
Practical tips:
Segment wisely: Identify which products, suppliers, and needs require special attention.
Automate reporting: Free up time for strategic analysis.
Integrate sustainability data with procurement data: ESG insights should be part of core analysis.
👉 Read the blog: “We’ll Try to Get the Reports Done This Year” – What Happens When Procurement Can’t Lead with Data?"
📐 2. PLAN – Plan continuously, not once
The traditional category process is often too heavy and slow from a business perspective. Category Management 4.0 favors shorter cycles, ongoing planning, and iterative development.
💡 Agile perspective: "Plan your category strategy like an MVP – create a first version quickly, test it in practice, and improve it through sprints and feedback."
Practical tips:
Recognize different rhythms: Not all categories operate at the same pace.
Build cross-functional teams: Teams combining procurement, product development, and business drive better outcomes.
Use lightweight strategy tools: A visual, evolving plan is more effective than a static document.
👉 Read the blog: “Developing Procurement – How to Get Started and Integrate Procurement into Everyday Operations?"
🚀 3. EXECUTION – Execute with agility and collaboration
A strategy without effective implementation that delivers business value is just a dream. In agile category management, execution is not a separate phase – it starts right away.
🌀 Agile execution: "Use sprints, backlogs, and daily stand-ups. Constant communication, piloting, and rapid feedback move things forward – not governance alone."
Practical tips:
Take small steps: Piloting + feedback is a powerful combo.
Run regular retrospectives with your team: What worked? What could be improved?
Test ideas with PoC projects: Try new solutions in a small, controlled setting.
👉 Read the blog: “CASE: Growth Regardless of Economic Cycles – Turning Procurement into a Strategic Competitive Advantage"
🧩 Summary: Category Management 4.0
Category Management 4.0 is more than a process change – it’s a mindset shift that combines smart data use, collaboration, agility, and continuous development into one value-driven whole:
Data-driven decision-making means moving beyond historical reporting to real-time insights from diverse data sources – interpreted with business relevance.
Flexible planning is built on MVP thinking and iterative cycles. Strategies are co-developed with business and stakeholders – continuously evolving through feedback and change.
Agile execution puts plans into action through sprints, backlogs, and continuous learning. This enables faster impact and constant improvement.
Learning-driven leadership positions category management as a living, adaptive way of working. Every step is an opportunity to learn, improve, and make smarter decisions.
Combined, these elements form a model where category management is no longer a rigid governance structure – it’s a truly strategic tool that brings clarity, speed, and business impact to daily decisions.
🎯 What does this mean in practice?
Category Management 4.0 is not just a new framework – it delivers real, tangible benefits in everyday work:
More business impact and alignment: Category strategies are no longer isolated documents. They are built in close dialogue with business objectives and customer needs. Procurement doesn’t just support the business – it helps shape it.
Faster decisions and greater transparency: Iterative work, clear KPIs, and up-to-date data enable rapid responses to change and ongoing visibility into what’s happening and what’s next.
Stronger engagement internally and externally: When different functions participate in planning and implementation, shared ownership and motivation grow. Suppliers are treated as partners – not just contract counterparts.
And above all: category management is no longer a static process – it’s a continuous journey of value creation and learning.
✅ Practical tips to renew your category management
🔍 DATA
Use multiple data sources and integrate insights from various systems.
Segment and prioritize your analysis.
Automate reporting to focus on interpretation.
📐 PLAN
Apply MVP thinking – let strategy evolve in practice.
Build cross-functional, self-directed teams.
Use visual and agile strategy tools.
🚀 EXECUTION
Work in sprints and manage actions with backlogs.
Hold regular team stand-ups and retrospectives.
Pilot and scale ideas quickly with PoCs.
💬 Interested in learning more?
If you're looking to make your category management more agile, value-driven, and collaboration-driven, I'm here to help.
Let’s talk about how we could take the next step together – through training, workshops, or sparring sessions tailored to your needs.
Best regards,
Lauri
The author of “Category Management: 4.0 ”
I’ve written over 150 blogs about procurement development, its role, and opportunities. If you enjoyed this one, I invite you to explore more – you’ll find real-life experiences, lessons, and practical insights from across industries and situations.
Would you like to talk about how to develop procurement in your organization?
👉 Book a time with Lauri here
📞 +358 50 4381912
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