Category Management for a Leading Manufacturer of Transportation Fuels
Engagement Overview: A leading player in the energy industry specializing in the manufacturing of transportation fuels wanted to implement an integrated category management strategy. To develop a strategy that aligns with their business goals, the transportation fuels manufacturer approached SpendEdge to devise a comprehensive approach to category management. A detailed quantitative analysis of various categories […]READ MORE >>
A leading player in the energy industry specializing in the manufacturing of transportation fuels wanted to implement an integrated category management strategy. To develop a strategy that aligns with their business goals, the transportation fuels manufacturer approached SpendEdge to devise a comprehensive approach to category management. A detailed quantitative analysis of various categories within the supply chain was carried out to identify and benchmark the industry best practices to be followed.
About the Client:
A multinational energy industry firm. The client is a leading manufacturer of transportation fuels with years of expertise in production, exploration, refining, and marketing of oil and natural gas.
The energy industry client was facing challenges in developing an integrated category management strategy to analyze supply chain processes and focus on key areas that drive business value.
How did SpendEdge Help the Client?
- Step 1: Compilation of questions to be answered in the category plan
Every category management plan has to address some key questions. The first step in this assessment was aimed at gathering data from several sources and identifying the key questions that had to be addressed in the category plan.
- Step 2: Developed a category plan based on market insights and recommendations
The category plan helped address key areas of category management. It included- opportunities, gaps, category strategies, goals, product assortment, placement, pricing, and targets.
- Step 3: Devised a three-step strategic implementation plan
The implementation of the developed category plan was carried out in a three-step approach. It included all the key implementation processes, making it easier for the category management team to follow.
Key questions answered in this category management engagement include:
Benefits of the Engagement:
The category management engagement helped the transportation fuels manufacturer to devise a strategic category plan. Also, with the help of a category plan, the energy industry firm was able to abolish fragmented buying to achieve sustainable savings across the organization’s spend profile.
Why incorporate category management solutions?
The growing demand and gradual deregulation in the energy industry have initiated several expansion plans that have subsequently given rise to a supply-demand mismatch in corresponding end market segments. Factors such as these are compelling leading companies to adopt precise category plans. Category management is a proven and effective way to utilize market data and increase sales.
Also, it enables category leaders to control, influence, and manage the category to drive significant savings. However, implementing the right category management strategy is the key to opening up a whole host of new opportunities for businesses across sectors.
The key outcome of the engagement revolves around identification and implementation of value opportunities. It helps reduce wasteful spending; thereby, helping businesses to compete more effectively. If your organization is on the lookout for an all-encompassing solution to drive category growth, category management is the ideal approach to identify and develop precise category plans.
Moreover, category management acts as an instrumental technique for improving category sales and delivering operational excellence. It also helps overturn the inertia that often sets in when businesses become inward-looking and cloistered.
To know more about our category management solutions
- Supply Chain Risk Assessment: A Case Study on How we Helped a Leading Processed Food Products Company Minimize Possible Losses and Increase Supply Chain Resilience
- Spend Analysis Engagement: How an Organic Food Manufacturer Achieved Cost Savings of $35 Million