What are category management strategies?
What are category management strategies?
According to CIPS, category management is a strategic approach that organizes procurement resources to focus on specific areas of spend. Category managers can zone in on one specific category and conduct market or pricing analysis for that particular group.
What are category strategies?
Put simply; a category strategy defines what a category needs to do to perform optimally. In other words, it’s a means to drive sales of a specific group of products and can be implemented at store level. More than that, it’s also defined by the role the category takes on within your stores.
What makes a good category strategy?
But true category strategy excellence requires a refined multiyear plan built on a complete understanding of category needs, agility to adapt to marketplace and technology changes, and clearly defined actions to create category savings in the near and long term.
What means category management?
Category Management is a strategic approach to procurement where businesses segment their spend into areas that contain similar or related products enabling focus opportunities for consolidation and efficiency.
What are the components of category management?
Components of Category Management The two core components are: the Strategy and the Business processes. The enabling factors are performance measurement, information technology, organizational Capabilities and co-operative Trading partner relationships.
What are the 8 steps of category management?
Category Management Process: The Key Steps
- Category Management Process: The 8 Steps.
- Step One: Define the Category.
- Step Two: Assess the Category’s Role.
- Step Three: Assess Performance.
- Step Four: Set Objectives and Targets.
- Step Five: Develop Strategies.
- Step Six: Category Tactics.
- Step Seven: Implementation.
What is a category management plan?
A Category Plan is a long-term plan based on a high-level assessment of an organisation’s spend and its stakeholders’ requirements. The plan includes purchasing prioritisation, resourcing and scheduling.
What is the meaning of category management?
Category Management is a strategic approach to procurement where organisations segment their spend into areas which contain similar or related products enabling focus opportunities for consolidation and efficiency.
How do you develop a category strategy?
Eight Chapters in the Journey to Category Strategy Success
- Engage the most important stakeholders.
- Understand the business requirements.
- Define a spending baseline and the evolution of that spending over time.
- Research the supply market.
- Analyze current suppliers.
- Perform internal and external benchmarking.