Why Incorporate a Category Management Strategy?
A category management process helps in the in-depth analysis and assessment of the supply market. With the aid of a category management process, businesses can evaluate sourcing destinations, monitor supplier performance, and facilitate an overall effective category planning cycle. A category management process also helps organizations to leverage the demand across the enterprise to achieve maximum savings.
Moreover, a category management process is all about focusing on a broader scope and the complete lifecycle of the products and services involved. A category management strategy entails more comprehensive internal customer management with the goal of constructing solutions that support business objectives.
Food Retail Industry Overview
The food retail industry has been experiencing steady growth over the last couple of years. With the recent change in customer choice, a sharp move towards online shopping, rising global population, and an increase in the purchasing power, the global food retail industry continues to progress at a good pace. The entry of global food giants in emerging economies has led to a boom in the food retail sector; besides, it has raised pressure on food retailer industry players.
In this era of steep market competition, global retailers in the food retail sector are facing stiff competition with the evolving consumers’ preferences. This is compelling food retailers to evaluate their store and brand portfolios and consider strategic alternatives in order to optimize capital allocation and growth opportunities.
About the Client
The client is one of the leading food retail industry firms established in the US. With a workforce of 15000, the food retail industry firm serves its customers’ requirements in 20+ countries worldwide.
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With increasing globalization and rising demand for food retail products, all companies in the food retail industry have started focusing on developing aggressive expansion plans, leading to a supply-demand mismatch in corresponding supplier markets. Thus, the client realized the need to understand the demand for commodity prices and gain timely insights into the market to create effective supply chain management and sourcing strategies.
Furthermore, with a wide range of product categories, the client the food retail industry client wanted to demonstrate opportunities to improve sales and margins. Additionally, the client was looking at modifying their category management strategy to address changes in the global food retail sector.
With the help of SpendEdge’s category management strategy, the client identified the key cost drivers in the industry. These included the cost of packaging, transportation, and losses owing to wastage, along with the cost of quality control, and clearing and handling charges. Furthermore, SpendEdge’s category management solutions helped the client to manage their spend, improve supplier selection decisions, and reduce source-to-pay cycle times. Moreover, following SpendEdge’s category management process, helped the client identify irrelevant information and extract precise content to deliver actionable insights to category managers, which helped them achieve an annual savings of $20 million.
It’s time to start making the necessary changes in your category management strategy. Get in touch today!