Advantages of Category Management
You can implement category management in your business if you deal with retail purchases or if you sell many products at a go. In category management, you join similar items in different categories. You can save a lot of money through category management because you will always make effective purchases. Boosting healthy performance of all suppliers is one of the main benefits associated with category management. The manner in which you work with your suppliers should always be effective. This can be possible when you have an effective category management plan. The delays between the order time and the delivery time is minimized in this case. You can make changes so that you will have efficient category management when you get a new supplier.
Satisfying the needs of your customers is an added advantage of category management. The person in charge of managing category is the manager. He will take care of all things that are related to a particular contract. He will source all requirements and ensure that he negotiates all the contract terms. This will give your employees enough time to focus on their respective positions. They will not feel pressured to perform duties that are not in their department. This will ensure that they will have enough time to focus on satisfying their customer needs.
Enhancing better supplier relationships is an added advantages of category management. This is because you will have a chance of establishing contacts within your business. There is a lot of coordination from the top level and it enhances long term relationships. In this case, other functions are delegated from the operational level. You will also get a chance to communicate effectively with all your suppliers. This enables the building of trust between the suppliers and the business. On time delivery is an added advantage of developing trust with your suppliers. Suppliers who are in good terms with your business will also deliver high-quality materials.
You should also consider category management because you will get better insight into how you spend. This is because each category is owned and operated by a single person. He will also be responsible for ensuring that accuracy is observed in all sorts of expenditures. You will always have a list of all suppliers, and this will ensure that you will also be sure of the spending. You will understand better how you spend your money, and this will help you cut on unnecessary spending. An added advantage of category management is that it helps you stay ahead of competition. Your customers can always market your business through word of mouth to other customers if they are happy and satisfied with your services.