CASE STUDY

Deploying a Category Management Strategy to Maximize Returns in the CPG Industry – A SpendEdge Success Story

Dec 26, 2018

CPG Industry Trends and Opportunities for Digital Retailers

The online retail segment is responsible for about 90% growth in the CPG industry- highlighting a fast-growing segment in an otherwise slow-growth industry. Once bolstered by high scale growth, CPG industry companies have been slow to adapt to the changes in consumer behavior, emerging channels, and technologies to carve out a niche for themselves in a $600b+ market. Let’s take a look at some of the biggest CPG industry trends that will continue to disrupt the CPG industry in 2018 and beyond:

  • E-commerce giants are pressurizing the CPG companies
  • Adoption of an omnichannel growth strategy
  • M&A’s are at a 15 year high
  • Greater focus on authenticity and brand value
  • Smaller brands with a good digital presence will grab a major share

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About the Client

The client– a prominent CPG industry firm headquartered in Texas. The client is a Fortune 500 organization, that holds a top spot in the online retail segment.

Client’s Challenge

Leading CPG industry companies find it challenging to improve their supply chain efficiency, but little do they realize the core of it lies in efficient category management that deals with categorizing commodities to maximize their value. The client approached SpendEdge with a similar concern ad sought to develop a strategic approach that organizes procurement resources to focus on specific areas of spend. By developing a robust category management strategy the CPG client wanted to generate a higher ROI than the traditional purchasing models.

Importance of Category Management

Today, category management has become a catch-all term for CPG industry companies. It is a function that defines a company’s success. Whether it is a category review for retail industry players or market analysis, securing a competitive edge depends on son how well you manage your supply chain request proposalcategories. A strong category management strategy translates into strong gains in distribution, favorable pricing, significant preference in promotional support, and advantageous shelf placement. A category management strategy not only helps CPG industry companies to enhance their efficiency but also benefits them in several other ways.

Key Findings

With the help of the solutions recommended by a team of category management specialists at SpendEdge, the CPG industry player developed a category management strategy which helped them maximize their returns. By adopting a meticulous category management process, the client succeeded in identifying and prioritizing categories based on the analysis of various aspects including the market size, product innovation strategy, and entry barriers. This, in turn, helped them maximize their returns without making additional investments.


SpendEdge’s smart procurement solutions offer a competitive advantage by simplifying the way you deal with your CPG industry data to empower you to easily extract actionable insights.

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