Implementation of Category Management in Procurement within Public Sectors - The Case of the City of Gothenburg

Abstract

Public sectors increased their focus on procurement processes, emphasizing a strategic importance as a key enabler of business performance. Category management is recognized as a new strategic approach in managing procurement operations in order to bring value for taxpayers´ money and improve overall businesses activities. However, approaches on how to implement category management in public procurement have not been fully explored yet due to special EU procurement legislation and other constraints. Therefore, the purpose of this thesis is to investigate how different public administrations implement category management in their procurement processes. This thesis is complemented by an in-depth case study of the Administration of Purchasing and Procurement in the City of Gothenburg. As there is a lack of empirical literature regarding implementation of category management in public procurement, this study contributes to filling this gap with a holistic overview that can help navigate public administrations during implementation of category management. The results, which are based on the interviews with public administrations in Malmö, Nacka and Oslo, show that despite strict procurement regulations, it is still possible to apply category management in their businesses. Further, analysis reveal that implementation of category management in public procurement is a challenging task which requires allocation of right resources and change management. However, all municipalities believe that by integrating category management it will reduce purchasing cost and improve overall performance.