Category Management Programme — IKEA Latvia

Background

IKEA Latvia's procurement function operated without a formal category management structure. Indirect spend was managed reactively — without defined category strategies, consistent sourcing processes, or clear ownership of spend areas. This created inefficiency and missed savings opportunities as the operation scaled.

What We Did

P.A. Ltd was engaged to design and implement a category management framework aligned to both IKEA's global procurement principles and the practical realities of the Latvian operation.

We began by mapping all indirect spend categories and assessing current state maturity — identifying where structured category strategies would deliver the most value. Six priority categories were selected for the initial rollout.

For each category, we developed a full category strategy: market analysis, supplier landscape mapping, demand profile, and a sourcing concept defining how the category would be managed on an ongoing basis. The sourcing process was standardised — from need identification through contract award — and embedded into the team's operating rhythm.

A key part of the engagement was knowledge transfer: ensuring the internal team could own and evolve the category strategies independently after the engagement concluded.

Outcomes

• Structured category management framework established for indirect spend
• Sourcing concept and repeatable process adopted across 6 categories
• Category strategies developed with clear ownership and review cycles
• Framework subsequently adopted as standard across IKEA Baltic operations
• Internal procurement team capable of running category reviews independently