Category Management Services Remove the Guesswork
Most products have a shelf life and batteries are no exception. Batteries degrade in performance after sitting on the shelf for some time. Improving inventory turns plays a key role in minimizing aging inventory. A balanced approach is necessary to optimize market coverage and sales velocity. Collaboration between battery sellers and battery suppliers is the best way to achieve the balance.
BSLBATT's assortment management service takes the guesswork out of retailers by providing them with a framework to help them determine the types of batteries and the timely sales volume of each. Data-driven assortment recommendations are tailored to each client's marketing strategy. Inventory recommendations can also be more finely tuned to account for differences in store locations and product focus.
An effective sourcing and supplier management strategy requires a good understanding of procurement best practices, but it also requires detailed knowledge of the spend category and the marketplace. As procurement departments strive to provide more value outside of traditional spend categories, they must initially leave the cost discussion at the door, and instead focus on strategic ways that they may be able to help the often reluctant stakeholders and spend managers.
First, What’s a “Category”? A category is essentially any group of similar items that a company wants to buy under the umbrella of a single deal.
“Category Management” is the process of pooling similar products into a singular category and then addressing all business initiatives for that category as a whole. These initiatives can include the procurement process, merchandising, sales and other retail efforts.
This is not the same as your "product data management system," which may or may not have the ability to group items into categories for proposals. It's also not the same as "vendor management," which references supplier relations. And last, but most often mistaken, it's not the same at "catalog management," which is how you purchase for and update your online catalog.
So, now we know what category management isn't, let's talk about what it is. At its most basic level, you can think of category management as a way of bundling like items to avoid separate, scattered agreements. This saves time, money and resources by consolidating disparate agreements into a single contract.
We know what Category Management is, how it is done and why is it important but what are the benefits?
Improved performance of vendors:- An operative and effective category management plan can aid your big or small business to work with vendors in a more effective style and can secure the time between the start and end of the process. Category management, if done tactically, can aid a new vendor or contract with layers of modifications.
Better client satisfaction:- Category management is the single responsibility of a category manager who looks after all the elements related to a given contract or service like sourcing requirements, collecting bids, and negotiating contracts with diverse suppliers. This provides plenty of time for business people to focus on their work and deliver diversity and value-based services to satisfy the client’s desires.
Improved relationships with diverse suppliers:- Management of category offers an opportunity to create contacts within the structure of the organization which is important for both big and small businesses. This should be your strategy and therefore enables the organization at the highest level and therefore, the designation of specific tasks takes place at the functional level. So, creating and organizing effective communication in such a way is a strategy that usually aids in improving relationships between all and diverse vendors.
Better insights into spending and negotiating product price so resources are met – accurate accounting:- Usually when a category is not maintained by anyone, there is hardly anyone who can provide vital insights into the accuracy of price, cost, and spending because no one is familiar with the contracts that are on the way. The full list of vendors is unidentified, and hence, the complete extent of expenditure is unknown too. It can facilitate a better understanding of expenditure of standard cost and actual cost on the existing as well as upcoming contracts.
The first factor when developing a category management plan is to determine the role that the battery category will play in a retailer’s overall business strategy. Does the retailer want to offer “everything to everybody” in terms of battery selection, or simply supply “something for most?”
Once that crucial question is answered, BSLBATT’s experts analyze the potential market for the retailer’s locations. They take into consideration a variety of inputs. Examples include consumers’ price sensitivity, the age and type of vehicles in the area, and the targeted consumer profile. Armed with these critical data points, the team then works with the customer to create an inventory plan that aligns the customer’s business goals with the available market.
Because BSLBATT’s approach can be customized for each location, the recommendations can be different, even within the same retailer. The objective is for each location to carry batteries that will sell before their shelf life is over. One size definitely does not fit all. A retail location in a suburban market may require a different assortment than the same retailer’s location in a rural market.
BSLBATT’s ultimate goal of Category Management Services is to partner with our customers to achieve their business objectives through a complete understanding of their unique needs and go-to-market strategies. At BSLBATT, we collaborate with our customers to understand where they want to go, and then we find the best way to help them get there.
