What is the process of categorizing the spend in an organization based on related products and services called?

The process of categorizing the spend in an organization based on related products and services is called category management. This approach involves analyzing and grouping similar items or services together to effectively manage procurement strategies and supplier relationships. By organizing spend into categories, organizations can better understand their purchasing behavior, identify opportunities for savings, and address specific needs within those categories.

Through category management, procurement professionals can develop tailored strategies for each category, optimizing supplier selection, negotiation processes, and the overall supply chain. This method not only enhances efficiency but also allows companies to align their purchasing decisions with their business goals.

The other options do not address the same specific focus on grouping related products and services. Cost analysis pertains to evaluating expenses related to specific products or services, supplier segmentation is about classifying suppliers based on specific criteria, and market analysis involves studying market conditions and trends rather than categorizing internal spend.