With the booming retail industry, category management has become an uphill task for category managers who fail to adopt the category management best practices that can turn around the organizational profitability. Organizations must invest in resources to gain an in-depth understanding of their supply chain, identify opportunities, and drive informed decision making. Category management best practices help identify and assess supply market, evaluate supplier options, and monitor supplier performance. With the help of category management best practices, procurement managers can identify the category drivers, resources, and outline the processes.
#1 Category Management Best Practices – Who?
The first and the most important thing for category managers is to gain an understanding of the category drivers. Category management cannot be effectively carried out in silos. Instead it is a shared philosophy, responsibility, a continuous process across departments within the organization that drive supply chain efficiency. Every individual in the organization must understand the category management philosophy communicated by procurement managers to get inputs and suggestions from different departments.
#2 Category Management Best Practices – What?
Category managers must know what are the resources that were invested to ensure effective management. Category management is a continuous process with different responsibilities right from planning to supplier management and financial accounting. Thus, category managers need to be trained in different areas and constantly update their skill sets.
#3 Category Management Best Practices – When?
It is essential for organizations to know when the process and operations are carried out along with the required performance measurement framework. Consistency in process evaluation is the key to ensuring a regular maintenance process for category management. The procurement managers must enlist key performance measurement metrics that help them assess the effectiveness of their strategies and measure the overall performance.
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