What Does a Category Manager Do? Insights for Higher Ed Procurement Leaders

From strategic sourcing to managing supplier relationships, category managers can guide procurement decisions, creating a more stable supply chain and delivering savings. Colleges and universities increasingly turn to category management to shape their strategies and achieve their goals.

What does a category manager do in higher ed procurement, and exactly what is a category manager in higher ed procurement? Let’s answer these questions.

What Is Category Management in Higher Ed Procurement?

Category management is a strategic approach to bringing together different types of goods or services into categories. With this grouping, you can reduce costs and make procurement more efficient. Using a data-driven approach to buy smarter leads to continuous improvement in procurement.

What Does a Category Manager Do in Higher Ed Procurement?

Category managers play an increasingly important role in higher education procurement by analyzing spending patterns and categorizing purchases. This analysis provides deeper insight into market trends, supplier capabilities, and supply chain dynamic. Using this knowledge results in better contracts, cost reductions, and stability.

Here are some of the key ways category managers help colleges and universities to reach their goals.

Cost Optimization

One of the primary responsibilities of category managers is to implement strategies that optimize spending. This might include consolidating purchases to bring more spend under contract or sourcing alternate suppliers to find savings.

Creating Value Through Strategic Alignment

Category managers understand the institution’s mission, vision, and values. A category manager ensures that procurement decisions align with these principles. For example, sourcing sustainable materials or partnering with diverse suppliers and offers a means from which institutions embody their values and reinforcing a positive public perception. Category managers are tasked with achieving cost savings without compromising quality. They negotiate favorable contracts, streamline supplier networks, and identify opportunities for bulk purchasing. These strategies allow institutions to stretch their budgets further, which is critical to addressing today’s financial challenges.

Forecasting and Strategic Planning

Category managers are forward thinkers, analyzing current trends and predicting future needs. They collaborate with stakeholders to anticipate shifts in demand and prepare accordingly.

A critical aspect of their role involves conducting a deep dive into SKUs to evaluate where products originate and how tariffs or supply chain disruptions might impact costs. By proactively adjusting categories, such as finding new suppliers or products, they can minimize risks and maintain budget stability.

Risk mitigation is another key part of the job. Category managers use this knowledge to balance the consolidation of suppliers to achieve savings without overreliance on single sources, which could produce supply chain concerns.

Inventory Lifecycle Management

Efficient inventory management is key to reducing waste and maximizing resource utilization. Category managers in higher ed typically oversee the inventory lifecycle, from acquisition to disposal. By implementing smart inventory management strategies, category managers can help institutions reduce waste while ensuring resources are available when needed.

Balancing just-in-time procurement with stockpiling is another challenge. Category managers analyze category-specific needs and market conditions to determine the most effective approach without tying up unnecessary capital in inventory.

Proactive Market Intelligence

Category managers must gather and analyze data to stay ahead of trends for better decision-making.

In 2025, there are mixed reviews on whether we’re headed toward a recession. The New York Fed’s recession prediction model has risen recently, forecasting a 42% chance of a recession in the U.S. in the next 12 months. As material costs continue to rise and higher ed budgets get tighter, category managers could pivot strategies to focus more on cost containment and preserve capital just in case. Or they might anticipate price hikes and buy ahead to lock in current pricing.

By understanding market and supplier dynamics, category managers can adjust procurement strategies.,

Building and Managing Relationships

The role of a category manager extends beyond data and strategy; it’s also about building relationships and optimizing management. Whether working with suppliers, internal stakeholders, or external partners, effective category managers prioritize collaboration.

Fostering these relationships leads to long-term stability. Reliable partnerships ensure consistent supply and mutual growth. For example, strong supplier relationships might lead to priority access during shortages or better terms during negotiations.

Category managers also act as liaisons between departments to make sure that procurement strategies align with academic and administrative needs. This collaborative approach creates more of a sense of shared purpose within the institution.

Leverage Category Managers at E&I Cooperative Services

Colleges and universities can leverage the expertise of category managers at E&I Cooperative Services. As the only nonprofit member-owned organization that focuses solely on education, E&I category managers have specialized insight into procurement categories. This expertise helps guide sourcing and solicitation on behalf of E&I’s 6,000 member institutions.

Contact E&I Cooperative Services today to see how category expertise can help improve your procurement process, leading to substantial savings.

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