Increasing the Efficiency of Procurement Processes as a Result of Implementing Category Management

Abstract

The contract system requires the development and adoption of management decisions to improve and optimize in order to increase the efficiency of budget expenditures at all different levels and stimulate the development of the real sector of economics. The subject of the study is the innovative approach based on the introduction of management by category. The article substantiates the need and shows the advantages of introducing category management in the procurement system of companies, describes its methodology, shows the process of developing and implementing the category strategy, including the following main stages: planning needs for the subject of procurement with the allocation of the category; forming a document with basic data; market analysis; strategy development, its implementation and monitoring; approaches to calculating the expected and actual effect of implementing this strategy; results of approbation of the management approach to the categories on the example of centralized procurement of vehicles. Restructuring the management system from the standpoint of category management is the most relevant for large companies with an extensive regional network and a large number of internal customers of goods, works and services.