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Today Category Management is considered by many global companies as an essential strategic purchasing approach.
Purchasing approaches selected supplier to negotiate quantity, quality, price and delivery of goods.
One of the problems with the nested approach "is that there is no clear-cut distinction between purchasing approaches, situational factors and demographics".
A cost leadership strategy aims to exploit scale of production, well defined scope and other economies (e.g. a good purchasing approach), producing highly standardized products, using high technology.
"We intend to establish the accountability that exists in any other purchasing approach," said V. Marc Droppert, who is on leave from Paccar Inc. to head the Seattle project.