Category Intelligence to Improve Market Presence by Assessing Competitors’ Category Strategies – A SpendEdge Case Study for a Retail Company
Engagement Overview: The fashion retail client wanted to develop and execute category market intelligence strategies in a sustainable way. To assess their competitors’ category strategies and improve their market presence, the fashion retail firm approached SpendEdge to devise a comprehensive approach to category management and implement those solutions throughout their global supply chains. A detailed […]
The fashion retail client wanted to develop and execute category market intelligence strategies in a sustainable way. To assess their competitors’ category strategies and improve their market presence, the fashion retail firm approached SpendEdge to devise a comprehensive approach to category management and implement those solutions throughout their global supply chains.
A detailed quantitative analysis of various categories within the supply chain was carried out identify, assess, and benchmark the best practices to be followed. Also, the constant monitoring of variables that could possibly impact the strategy led to the development of a precise category plan. The variable included – consolidation within the sector, entry of new players, technological developments, and macroeconomic changes.
About the Client:
A multinational retail company specializing in fashion retail. The client is a leading player in the retail industry with several well-established subsidiaries operating in over 20 developed economies.
The fashion retail client was facing difficulties in developing a market intelligence based category plan.
How did SpendEdge Help the Client?
- Step 1: Developed a three-step methodology
Our category market intelligence experts followed a structured approach to develop a precise category plan.
- Step 2: Benchmarking of peers and incumbent suppliers
Identified potential saving opportunities across 10 categories and by providing benchmark pricing, we helped them ensure that the quoted price is in line with the average market price.
- Step 3: Identified new category trends and reported best-in-class performance metrics
Identified new category trends and niche supplier segments – identifying market trends well in advance helped the client to plan for the future.
Benefits of the Engagement:
Our category market intelligence solution helped the fashion retail firm to monitor all the developments across the organizations’ direct and indirect procurement categories. Our team worked as an extension of the client’s business to filter out irrelevant information and extract precise content to deliver actionable insights to category managers in the form of industry reports, periodic newsletters, and annual updates among others.
Why incorporate category intelligence solutions?
Growing technological advancements and a rise in globalization have resulted in the rapid evolution of business models and procurement categories across industries. This has made it necessary for category managers to leverage category market intelligence and adopt a pro-active approach to category planning. Category market intelligence based solutions help companies to leverage demand across the enterprise to achieve maximum savings.
Key questions answered in this category market intelligence study include:
To devise a precise category plan, category managers require access to comprehensive and timely insights. It also requires appropriate updates on category developments to spot early warning signals and curtail supply chain disruptions.
Though leading players in the retail industry have recognized the importance of having category strategies and market intelligence mechanisms, they seem to limit their efforts to direct procurement categories. It is important to note that indirect procurement categories such as – finance, HR, IT, and logistics can also cause significant liabilities for clients though they do not constitute a significant part of their spend.