How One Buyer Used Category Strategy to Cut Spend by 18 Percent

In Episode 34 of The Buyer's Side, Lucas and Luna explore how a mid-size manufacturer's procurement team used category management—not just one-off negotiations—to reduce annual spend on packaging by 18 percent. They walk through the five-step process: spend analysis, market segmentation, supplier positioning, strategy development, and implementation. The episode focuses on the specific case of a $12 million packaging category where the buyer identified three sub-segments (corrugate, flexible films, and rigid plastics) and applied distinct tactics to each—from consolidating volume with one corrugate supplier to running a competitive auction for films. Lucas explains how category management differs from traditional sourcing by treating each category like a mini-portfolio. Luna shares a real-world example of how her team used a similar approach for MRO supplies. Listeners will learn the concrete steps to build a category strategy and how to present it to leadership for buy-in. #CategoryManagement #Procurement #Sourcing #SpendReduction #Packaging #Business #FexingoBusiness #BusinessPodcast #StrategicSourcing #SupplyChain #CostReduction #SupplierManagement #MarketSegmentation #SpendAnalysis #PortfolioManagement #Negotiation #Manufacturing #B2B Keep every episode free: buymeacoffee.com/fexingo