The Shift Away from Category Teams
For years, procurement has relied on fixed category teams, where specialists manage specific spend areas and develop deep supplier expertise. But as procurement functions face increasing pressure to be more agile, embedded, and responsive, the cracks in this model are showing. Many organizations are experimenting with new ways of working, and some leaders are questioning whether the traditional category team structure can continue to serve evolving business needs.
If procurement functions were to shift away from traditional category teams, what alternative structures could emerge? What happens when procurement shifts from a function of predefined silos to one that dynamically adjusts to business priorities? Here’s what a procurement function without category teams could look like—and what leaders need to consider as they prepare for the shift.
How Work Gets Done Without Category Owners
The biggest question is how work gets done without dedicated category owners. Some organizations are already moving toward a “flow to work” model, where cross-functional teams form around business needs instead of static spend categories. Others are embedding procurement professionals directly into business units, allowing them to operate more like strategic advisors rather than gatekeepers. These models promise greater flexibility and alignment with business priorities, but they also introduce challenges. Who owns supplier relationships? How do companies ensure deep market expertise? Where does governance sit?
Retaining Supplier Knowledge and Market Insights
Category teams have traditionally served as repositories of supplier knowledge and market insights. Without them, procurement must find ways to retain deep expertise without reverting to silos. Leading organizations are exploring different approaches. Some are establishing Centers of Excellence (CoEs), where specialized teams focus on supplier strategy, risk management, and analytics, acting as an internal knowledge hub for the rest of the business. Others are shifting toward procurement generalists who blend commercial, analytical, and stakeholder management skills rather than deep category specialization. Another emerging model is supplier-embedded collaboration, where procurement structures relationships more dynamically and relies on external partners to fill expertise gaps rather than maintaining all knowledge in-house.
Managing Decision-Making and Governance
One of the biggest risks in breaking away from category management is losing control over decision-making. If procurement moves toward more flexible structures, companies must ensure that spend isn’t fragmented and supplier governance remains strong. Some emerging solutions include AI and data-driven procurement, where supplier insights, risk analysis, and pricing benchmarks are automated to reduce reliance on individual category managers. Others are embedding procurement professionals within business teams rather than keeping them in a central function, ensuring better alignment with business priorities. There is also a shift toward stronger contracting and policy frameworks, where procurement sets the standards but isn’t responsible for every individual purchase decision.
The Impact on Procurement Talent
If procurement moves away from category-based structures, this shift will also impact talent. Future procurement careers will likely emphasize strategic problem-solving over category expertise, requiring leaders who can think cross-functionally and drive business impact. Technology fluency will become critical, with professionals needing to leverage AI, analytics, and automation to make faster, smarter decisions. Additionally, stakeholder influence will be a key competency, with procurement professionals expected to have stronger commercial and relationship-management skills to ensure they remain key players in business strategy.
The Future of Procurement Structure
Despite these trends, category teams remain a critical part of many procurement organizations, though their role is evolving. Procurement leaders must prepare for a future where rigid teams give way to more flexible, high-impact models. The shift won’t be uniform—some companies will adopt new structures faster than others, and procurement leaders will need to balance agility with control. The discussion isn’t about if procurement will change, but how organizations can best adapt their structures to remain effective and agile. The time to prepare is now.
