Category management is an efficient method to optimize sales in retail stores. The delineations of the categories of the products are often applied to consumer packaged goods or CPG. The main goal of the category approach is to better meet the clients’ needs for each type of product available in store. It is one of the best ways to determine and asses supply market. It can also help evaluate supplier options and manage supplier performance properly. But what are the most effective practices to reach your objectives? Here are the answers.
Category Management: a Teamwork
The first of the category management best practices in retail is to always remember that the success of any retail business always depends on the strength of the professional relationships and the communication between colleagues. So, a good category manager must have an understanding of the category drivers. This field requires a real team spirit from every actor involved. You can even consider it as a shared philosophy which implies that everyone has to take their own responsibility. Category management is also a continuous process across all departments of your retail company. The aim is to drive supply chain in the most effective way. All the drivers should know that managing the categories of the products displayed on the shelves is a series of tasks that concerns each of them. On the other site, procurement managers must communicate the category management philosophy to them in order to get inputs and ideas from all the departments.
Hire a Competent Category Manager
Category management is a quite delicate operation that only experts can succeed. It may seem more expensive than doing the job by yourself but the return of investment will be way more interesting for your retail business. A professional will do anything to know all the resources that your company has invested to enhance the performance of the sales. Moreover, category management is a continuous process that demands many responsibilities. An expert must be able to manage the planning, but also the supplier management and the financial accounting. Clearly, hiring a qualified and experimented category manager will help you increase your sales figure considerably because his skill sets are updated and you will have more time to concentrate on your own responsibilities.
Category Management: Consistency is the Key
Everything must be accurate and relevant in terms of category management. The main goal is to help the customers find the products they need in the easiest way possible. You can even conduct a retail store audit and realize a planogram before putting in place the right category management solution if needed. Anyway, it is very important to any retailer to define the perfect moment to carry out the process and the operations along with the expected performance measurement framework. Accuracy is crucial to obtain a regular maintenance approach for your category management. At the same time, the responsible of the procurement has to enlist key performance measurement metrics to assess the performance of the adopted strategy and evaluate the efficiency of the whole project.