Commodity grouping, a crucial aspect of the landscape assessment stage, involves sourcing specialists identifying similar goods or services with shared supply and demand drivers and suppliers. This categorisation, like grouping chairs under the broader category of "furniture," aims to optimise procurement efforts.
Notably, a commodity group or procurement category can encompass multiple procurements, varying based on the organisation's size, type, and the supply market dynamics. The objective is to strategically group goods or services with commonalities in supply processes, internal use, specifications, technology, and demand drivers.
