BLOG

Category Management Best Practices You Will Need in 2019

Jul 23, 2019

Most retailers do not have an effective category management strategy. They are worried about the amount of work it will take to review inventory and refresh product mixes by category. Whatever be the reason, it’s high time for big and small retailers to adopt category management best practices to boost category sales and ensure profitability in the long term.

Retailers need to know that category management isn’t a one-size-fits-all approach. They have to make use of available data to make better decisions regarding optimum range, merchandising, and price and promotion of product categories.  If they fail to understand categories, the cash flow will be badly impacted. Therefore, we have listed the category management best practices to help companies address customer objectives in a better way.

Want to know how category management best practices can help you increase category sales and improve cash flow? Request a free proposal to access our complete category market intelligence solution portfolio for free.

Request Free Proposal

Category Management Best Practices that You Should Know

Category management best practices #1: Trust your distributors

Distributors are of great help when it comes to improving category management. They possess information about the products that are performing well in the market and can create planograms based on existing sales. This will help businesses to adopt a systematic, disciplined approach to managing a product category as a strategic business unit. Also, if a certain product category doesn’t meet customer expectations, it can be identified beforehand.

Category management best practices #2: Put numbers on shelf tags

Putting numbers on shelf tags will help you track each product’s sales velocity. This will allow easy identification of best sellers and help you ensure the availability of those SKUs in stock. Additionally, assigning number-one to a top-selling item (a product that sells 4-times a week), number-two to an item that sells three times week will help in monitoring category sales. You can review these numbers in every six months as sales velocity of product changes with changing seasons and trends.

Category management best practices #3: Consolidate data

Consumers, today, have plenty of options to meet their needs. Retailers who can utilize data effectively to understand the needs of their customers have better chances of retaining shoppers and increasing sales. Identify products that are most important to shoppers and have the most price sensitivity to the best customers. This will help you understand whether your category management process is efficient enough to meet consumer needs or not. 

Consolidating data is crucial for companies to improve category planning. Request a free demo to start your 7-day free trial now!

Category management best practices #4: Automate processes

The market changes rapidly and sometimes in a very short period. A sudden weather event or influencer tweets can change the market dynamics, putting procurement category managers in a position where they will have to need to react swiftly. Automating different parts of category management will allow managers to analyze product categories, categorize spend and calculate cost related to those products in no time. Such automated reports will improve decision making and help in prioritizing categories that are most important to look at, focusing on resources and labor in the right places. 

Category management best practices#5: Low price is not the key

Often retailers chase pricing against the competition. However, this is not required all the time. Leverage data to and identify customers groups and price the product right. You don’t have to compete with the bigwigs on every price – you just need to be more targeted. This will help you invest margins in better places and achieve substantial gains.


You May Also Like: 

  1. An Introduction to Category Management
  2. Category Management Helps a Food and Beverage Firm Achieve Significant Cost Savings by Proactively Managing the Procurement Expenditure

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars