Why Is Category Management Important – and How Do You Communicate Its Value?

Lauri Vihonen
May 21
3 min read

Today, in our Category Management training led by Lauri Vihonen and Hanna Pajunen-Muhonen, we practiced how to express the value and benefits of category management.

The training included 12 participants, working in three groups. Each group completed a 10-minute rapid exercise to answer the question: “Why is category management important?”

The results were collected on a wall and jointly analyzed. Based on the input, we identified seven key benefits, which formed the foundation for building short, impactful elevator pitches.

🔍 Seven Key Observations from the Group Work

The groups identified the following key benefits of category management:

Strategic alignment
From firefighting to strategic action
Proactivity
Efficiency
Combining volumes
Leveraging and motivating supplier innovation
Sharing best practices across units

🧩 The benefits were categorized into three levels

Benefits that support business goals
Method- and process-related benefits
Practical examples and experiences

From these, participants built a narrative that culminated in an elevator pitch. The story can be adapted to different target audiences depending on their role and focus.

🎤 What Is an Elevator Pitch – and Why Does It Matter?

An elevator pitch is a short, concise, and compelling message that presents an idea, initiative, or improvement in a way that captures attention – typically in 30 to 60 seconds.

🎬 Where Does the Term Come From?

The term originates from the U.S. The idea is that if you find yourself in an elevator with a key decision-maker, you only have a brief moment – the duration of the ride – to convey your message in a way that sticks and sparks interest.

💡 Why Is an Elevator Pitch Useful in Category Management?

If we want senior management, the procurement team, or internal stakeholders to engage with and support category management, we need to answer their core question:

“Why should we do this?” or “Why should I spend time on this?”

The elevator pitch is a powerful way to deliver that “why” – quickly, clearly, and persuasively. A great pitch combines logic, relevance, and the listener’s perspective.

🎯 Sample Elevator Pitches for Different Audiences

1 For Business Leadership

“Procurement is often fragmented and as a result, strategic direction and overall value are lost. Category management brings clarity and impact: it consolidates volumes, aligns resources with the right priorities, and increases predictability. It’s not just a procurement tool – it’s a vehicle for executing business strategy, leveraging supplier innovations, and driving results.”

2 For the Procurement Team

“Without category management, our role easily remains operational. Category management gives us a clear model to act proactively, develop supplier collaboration, and deliver business value. It helps us evolve from operative role to strategic partners – one category at a time.”

3 For Internal Stakeholders (e.g., Production, R&D, Business Units)

“Procurement is often seen as a disconnected support function – or even a bottleneck. Category management brings transparency and enables true collaboration: goals, needs, and methods become clearer – and best practices are shared across the organization. With category management, we work smarter, together, and deliver value across the business.”

✅ Summary and Next Steps

Being able to articulate the value of category management is a critical skill when aiming to build shared understanding, increase impact, and drive commitment across the organization.

The elevator pitch is a concrete and effective way to answer the question:

‘Why does this matter?’

The exercise showed that even in a short time, it’s possible to find clear, business-driven arguments – especially when working together.

Everyone can – and should – develop their own version.

🎯 Your Next Step:

Build your own category management elevator pitch – from your perspective, for your stakeholders.
Practice delivering it so you can use it naturally in meetings, strategy sessions, or leadership conversations.
Use it consistently – the more clearly you communicate the message, the faster category management becomes embedded in everyday decisions.