How State Agencies Use
Category Management
State agencies use category management to take a coordinated, enterprise-wide approach to procurement that improves efficiency, consistency, and outcomes across government operations. Rather than managing purchases in isolation, category management allows agencies to group related goods and services into defined categories and manage them strategically over time.
In the public sector, procurement must operate within statutory requirements, transparency obligations, and public accountability. Category management provides a structured framework that helps agencies meet these obligations while still improving value, managing risk, and aligning procurement activity with broader policy and operational goals.
Organizing Spend Into Defined Categories
State agencies begin category management by organizing procurement activity into clearly defined categories, such as information technology, professional services, facilities, fleet, or construction. This approach allows agencies to understand total spend across departments, identify duplication, and recognize opportunities for coordination.
By viewing spend at the category level, agencies gain better visibility into purchasing patterns and can make more informed decisions about sourcing strategies, contract structures, and supplier relationships.
Coordinating Procurement Across Agencies and Departments
Category management supports coordination across agencies, divisions, and programs that may otherwise procure similar goods or services independently. Through shared strategies and governance, states can reduce redundant solicitations, standardize contract terms, and leverage collective buying power where appropriate.
This coordinated approach is particularly valuable in decentralized procurement environments, where agencies retain autonomy but benefit from shared planning and alignment at the category level.
Managing Suppliers and Reducing Risk
State agencies use category management to improve supplier oversight and reduce procurement risk. By managing suppliers across an entire category rather than contract by contract, agencies can better monitor performance, identify risks, and address compliance issues consistently.
Category management also supports broader public-sector priorities, such as supplier diversity, sustainability, and workforce considerations, by embedding these goals into category strategies rather than treating them as one-off requirements.
Aligning Procurement With Policy and Legislative Goals
Category management helps states align procurement activity with legislative mandates, executive directives, and policy initiatives. Whether supporting small and diverse businesses, sustainability goals, or economic development priorities, category management provides a framework for integrating policy objectives into procurement planning and execution.
This alignment ensures that procurement decisions support not only operational needs but also the broader public interest.
Supporting Strategic Sourcing and Continuous Improvement
Category management does not replace strategic sourcing; instead, it provides the framework within which strategic sourcing occurs. State agencies use category management to set long-term direction for a category, while strategic sourcing is applied to execute specific procurements that align with that strategy.
Over time, category management enables continuous improvement by allowing agencies to assess outcomes, refine strategies, and adjust to changing market conditions, regulatory requirements, and agency needs.
Why Category Management Matters for State Agencies
By using category management, state agencies are better positioned to move from reactive purchasing toward proactive procurement planning. This approach supports greater consistency, improved compliance, and stronger stewardship of public funds, while still allowing flexibility to address agency-specific requirements.
When implemented effectively, category management helps state governments achieve more transparent, efficient, and value-driven procurement outcomes.
To learn more about how Calyptus supports state agencies in applying category management to improve coordination, consistency, and procurement outcomes, see our Strategic Sourcing & Category Management services.