The client had a wide range of product categories with different rates of inventory turns and buying relationships with suppliers. As a result, they wanted to demonstrate opportunities to improve sales and margins, change the basis for negotiations with suppliers, and transfer such competences to the internal organization.
A robust category management engagement was carried out to help the client improve sales and margins. The category management solution also helped the client establish internal centers of excellence with formal methodologies, tools, and training for knowledge transfer to the other teams in the organization. Following this, the industrial biotechnology company identified significant savings of $20 million from improved category management.
About the Client
A leading industrial biotechnology company with several well-established subsidiaries operating in over 15 countries.
The client had trouble in achieving growth and addressing margin problems.
How did SpendEdge Help the Client?
Step 1: Identified the effective pricing strategies
Our category management experts followed a comprehensive research methodology and carried out discussions with prominent stakeholders in the industrial biotechnology space.
Step 2: Developed a comprehensive supplier landscape assessment framework and associated tools to help the client increase focus on suppliers that could grow into strategic partners
The experts compiled information from a wide array of proprietary sources such as company presentations, paid industry databases, and industry forums
Key questions answered in this category management engagement
Benefits of the Engagement
With the help of SpendEdge’s category management, the industrial biotechnology client was able to identify and implement value opportunities. The engagement also helped the client improve positioning, increase market share, and gain sustainable customer loyalty; consequently, helping them enhance their competitive position in the market.
Why incorporate category management?
Category management solutions build on the credibility that strategic sourcing professionals have created for themselves over the years. Moreover, category management is all about focusing on a broader scope and the complete lifecycle of the products and services involved. It also entails more comprehensive internal customer management with the goal of constructing solutions that support business objectives.
Category management involves understanding the business objectives and then tailoring or assembling a solution to meet these requirements. For instance, the most appropriate solution could be the simple execution of a strategic sourcing lever, like a competitive bidding process. In another, the solution could be to rather focus on supplier performance management to extract the most value.