CASE STUDY

Category Management Study for a Baby Food Supplier in Europe

Sep 18, 2017

Category Overview

Over the past few years, the baby food supplies industry has been proliferating due to the growing urbanization and changing lifestyles across the globe. Additionally, factors such as the increasing awareness about nutrition, rise in organized retail marketing, urbanization paired with a significant upsurge in the count of working women population are some of the key factors boosting the growth the industry. However, according to SpendEdge’s category management experts, the upsurge in commodity prices and increase in the level of competition across the supply chain have resulted in the sluggish growth of the industry in the last couple of years. As a result, players in the baby food supplier have started adopting category management studies to reduce maverick spends and develop better sourcing strategies across the supply chain.

Moreover, the category management solutions offered by SpendEdge help baby food suppliers to reduce their overall spending.

The Procurement Pain Point and Insights Offered

A leading baby food supplier from Europe wanted to evaluate the dynamics of the market and key category drivers influencing growth. They also wanted to develop a better sourcing approach and maintain healthy relationships with their suppliers. Additionally, they wanted to gain insights into the suppliers pricing, cost structure, suppliers’ diversity, and evaluate competitors’ best practices.request free proposal

To address the specific requirements of the baby food supplier, the category management experts at SpendEdge carried out a comprehensive two-step research methodology, which included primary and secondary research and assessments of industry journals, magazines, and interviews with key market stakeholders.

During the course of this category management study, the baby food supplier was able to evaluate the dynamics of the market and key category drivers influencing growth. Additionally, with the help of SpendEdge’s SWOT analysis, the client was able to develop a better sourcing approach and maintain healthy relationships with their suppliers. The client was also able to evaluate the dynamics of the market drivers and gained insights on the supplier’s cost and pricing structure, which helped them assess competitors’ best practices.

Key questions answered in this category management study include

category managementBusiness Outcome

The category management study helped the baby food supplier develop superior sourcing strategies across the supply chain. Additionally, the client was recommended tools to reduce source-to-pay cycle times and enhance their supplier selection decisions. This helped them build effective strategic sourcing strategies and maintain better relationships with their suppliers.

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