The client, a leading personal grooming products retailer wanted to address a wide range of challenges arising due to inefficient category management strategies, including – supply chain inefficiencies, slow procure-to-pay cycles, and poor supplier relationship management. As a result, the personal grooming products retailer approached SpendEdge to help them leverage robust category management strategies to address their challenges.
This category management engagement involved a detailed quantitative analysis of various categories within the personal grooming products category to help the client identify and benchmark the best suitable category management strategy.
About the Client
An American multinational consumer goods business headquartered in Ohio, United States. The company primarily specializes in a wide range of personal care and hygienic products.
The personal grooming products retailer was facing several predicaments due to factors such as competitive pressure, changes in the consumer profiles, economic factors, industry consolidation, and technological advancements.To overcome such challenges and devise multifunctional collaborations across their supply network, the client wanted to deploy SpendEdge’s cutting-edge category management strategy.
How did SpendEdge Help the Client?
Step 1: Defined the role of each category within the supply network
This step spun around the process of defining the role of each category to help the personal grooming products retailer identify the importance of every category. This further helped the client group different product categories based on the priorities assigned to them.
Step 2: Developed category scorecards for the client
A category scorecard is the strategic allocation of work to achieve the goals and reach the objectives assigned for each category. The category scorecard included a detailed evaluation of the different categories to help the client develop precise goals and targets for each category.
Key questions answered in this category management engagement
Benefits of the Engagement
With the help of SpendEdge’s category management engagement, the personal grooming products retailer set clear category objectives and fine-tuned their category management strategies to boost their savings. Additionally, the client identified the success factors that uncovered major opportunities to enhance their brand perception.
Why incorporate category management?
With the growing competitive pressure in today’s retail industry, players are constantly faced with the challenge of enhancing brand visibility. Category management solutions are tailored to help retail industry players minimizing wasteful spend. Additionally, aligning business processes with SpendEdge’s category management strategies helps achieve organizational goals set for retail industry players; thereby, establishing a superior brand presence in the category and achieving competitive advantage.
An effective category management solution acts as an instrumental technique for enhancing business value by overturning the inertia that often sets in when businesses get confined to set standards. Additionally, category management helps organizations increase competitiveness and enhance value from a customer’s perspective.