The 10 Biggest Mistakes in Category Management – and How to Avoid Them

I’ve helped over 200 organizations launch and develop category management. Along the way, I’ve seen the enormous potential it offers – and how quickly even a good idea can fail if the basics aren’t in place. This blog is about avoiding the 10 biggest mistakes in category management

In this blog, I share the 10 most common mistakes that can derail category management before it even really gets started – along with practical tips to avoid them.

1. A Category Manager Without Time or Authority

Someone’s been given the title, but in practice the role is sidelined. There’s no time, no decision-making power, and no senior-level support.

How to avoid it:

• Ensure the category manager has sufficient time and support.

• Clarify the role and expectations – a title alone is not enough.

• Leadership must stand behind the role.

2. Thinking that Analysis Is Enough

Category management is not an Excel exercise. Analysis alone doesn’t change anything if it’s not followed by decisions and implementation.

How to avoid it:

• Link your analysis to a development path and concrete actions.

• Ask from the beginning: What will we actually do with this data?

3. No Business Involvement

Procurement tries to build a strategy in isolation, without involving users or subject-matter experts. The result? A strategy on paper – with no real ownership.

How to avoid it:

• Involve business stakeholders and users from the start.

• Build a model for co-development – not a solo project.

4. No Clear Objectives

“We want to develop the category” isn’t a real goal. Without objectives, it’s impossible to prioritize or measure success.

How to avoid it:

• Set 1–3 clear, concrete, and measurable objectives.

• Align them with business needs and use the business’s language.

5. Treating It Like a Project – Not a Management Model

Category work often starts as a project, but once the project team dissolves, the work disappears. There’s no lasting management model in place.

How to avoid it:

• Integrate category management into your annual planning, roles, and governance.

• Document, repeat, and follow up – a project ends, a management model continues.

6. The Category Process Is Overcomplicated and Impractical

The process looks good on paper but doesn’t support day-to-day work. In the worst case, it gets in the way.

How to avoid it:

• Design the process from the perspective of practical daily work.

• Allow room for adaptation and keep it simple.

7. The Category Plan Is Just a Backward-Looking Wish List

The plan is based on historical purchases and vague improvement ideas. It lacks market insights and future perspective.

How to avoid it:

• Include market data, supplier insights, and scenarios.

• Prioritize impactful actions – not just hopes and wishes.

8. No Clear Management Model

Work is being done, but there’s no agreement on how it’s managed, followed up, or supported.

How to avoid it:

• Build a clear management model: what is reported, to whom, and when?

• Make progress and obstacles visible – for the team and leadership alike.

9. The Category Team Feels Powerless

The team is given responsibility without authority. Decisions are made elsewhere – or not at all.

How to avoid it:

• Clarify decision-making roles and mandates.

• Support the team – don’t assign responsibility without resources and backup.

10. Poor Communication and Change Leadership

Category management is misunderstood because it’s poorly communicated. Resistance grows, and progress stops.

How to avoid it:

• Explain in simple terms: why are we doing this, and what’s the benefit for others?

• Use examples and stories, not just terminology.

• Lead the change through communication, interaction, and trust.

Final Thoughts: Small Mistakes Can Undermine a Big Opportunity

Category management is a powerful tool for developing procurement strategy and supporting the business. But only if it’s built on a strong foundation.

If you recognized one or more of these mistakes in your organization – good. The first step is identifying what needs to be fixed. The next step is fixing it.

The author of “The 10 Biggest Mistakes in Category Management”

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