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Category Manager vs. Procurement Manager: What Are the Differences?

Learn about the two careers and review some of the similarities and differences between them.

Category managers and procurement managers are both responsible for the purchasing of goods and services for their company. Though these positions share some similarities, there are several key differences between them. In this article, we discuss the differences between a category manager and a procurement manager, and we provide additional information on each role.

What is a Category Manager?

Category Managers are responsible for the strategic planning and execution of all aspects of a product category within a company. This includes developing category plans, conducting market analysis, managing vendor relationships, and overseeing product development and marketing initiatives. Category Managers work closely with other members of the marketing team, as well as with cross-functional teams such as product development, engineering, and sales, to ensure that all company objectives are met.

What is a Procurement Manager?

Procurement Managers are responsible for planning, directing and coordinating the purchasing activities of an organization. They work with suppliers to negotiate contracts, secure pricing discounts and ensure timely delivery of goods and services. Procurement Managers develop and implement purchasing policies and procedures to streamline the procurement process and reduce costs. They also oversee the work of buyers and purchasing agents to ensure that they are adhering to company policies and procedures. In some organizations, Procurement Managers may also be responsible for managing the inventory of goods and materials.

Category Manager vs. Procurement Manager

Here are the main differences between a category manager and a procurement manager.

Job Duties

Job duties for both of these roles can vary based on the company and the needs of that company’s customers. Category managers often focus on researching customer preferences, analyzing data about their products and creating marketing strategies to attract new customers. These professionals may work with advertising agencies to create advertisements that appeal to their customers. Procurement managers typically manage the procurement process for their organization, which means they make sure the company has access to the necessary resources while staying within a budget. They may research suppliers, negotiate prices with vendors and oversee shipping and transportation logistics.

Job Requirements

Category managers and procurement managers typically need a bachelor’s degree in business administration, marketing or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many category managers and procurement managers pursue certifications through the National Association of Purchasing Management (NAPM) or the Institute of Supply Management (ISM). These organizations offer training programs that teach professionals how to use purchasing software and other tools they might need on the job.

Work Environment

Category managers and procurement managers work in different environments. A category manager typically works for a company that sells products to consumers, such as retail or grocery stores. They may travel between locations to ensure the proper inventory is available at each location. Procurement managers usually work for companies that sell products to other businesses, like manufacturers or wholesalers. These professionals often spend their days in an office setting, but they may also visit clients to discuss business opportunities.

Skills

Category managers and procurement managers share some similarities in the skills they use on the job. Both roles require excellent analytical skills to review data and understand trends that can inform their decision-making. They also both need to be able to negotiate effectively to get the best possible prices for their products or services.

However, category managers and procurement managers have different responsibilities, which can result in different skill requirements. Category managers focus on a specific product category, such as office supplies, and they work to ensure that their company has the right mix of products to meet customer demand. This can require excellent forecasting skills to anticipate changes in customer needs. They also need to be able to develop relationships with vendors to stay up-to-date on new products and trends.

Procurement managers, on the other hand, are responsible for all of the purchasing decisions for their company. This can require them to have a more in-depth knowledge of the supply market and the ability to manage a team of buyers. They also may need to have project management skills to oversee the procurement process from start to finish.

Salary

Category managers can earn an average salary of $97,178 per year, while procurement managers can earn an average salary of $95,784 per year. Both of these average salaries may vary depending on the size of the company at which you work, location of your job and the level of experience you have prior to pursuing either position.

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