Wednesday, November 13, 2013

Category Management Series: Supply Chain As A Key Component

It has been a while I have not fed the category management series, even though i know it has some success. Today I wanted to discuss about one of the key of category management, especially for fast moving goods categories: The supply chain.

The supply chain is a very important part of category management. Indeed, you may have set the best product range, the most attractive promotional offer, or have a massive number of customers, if your supply chain has not been integrated properly, it may lead to a disaster.

An efficient supply chain is the one which provides you with the appropriate number of products, at the appropriate time. Problems with supply chain lead to stockout, which is one of the main cause of unsatisfied customers. Customers expect you to own the products of your product range, and it is one of the basis of one retailer's trade.

The supply chain therefore should always been integrated to the category management process right from the beginning and followed through. Indeed, a problem with the supply chain management may explain under performance for example of a promotion, if the product has not been available right from the beginning of the communication.

A strong supply chain also implies good interractions between the retailer and the supplier in order to minimize the issues that may appear once a category management program has been set.