Category Management

Category Management as strategic tool for your purchasing department

The development of category management systems can be one of the most important strategic tools within your purchasing department. Our approach is to develop an optimized strategy for each material group or category by using an analysis of your own products’ structure and its data history, of the market potential for the product as well as the customers’ and suppliers’ structures.

The foundation of our successful category management system is the transparent display of the clients’ current situation. The flexible data structure that our solutions are based upon enables us to connect and present your master data (items within varying material groups, with the possibility of also being in differing main or sub groups) all connected with transaction data (purchase orders, invoices) in such a way, that you get an immediate overview over the existing category structures inclusive their history. Information such as order volume per category, per supplier and per article overall as well as their percentages are at your fingertips and can be analyzed immediately using the  integrated tools. Already, at this point, you can have taken your first steps toward full optimization.

To enable the systematic development of strategies using this database it might be helpful, if possible, to improve the existing internal booking data, the existing ’hard facts’, with further information such as internal planning data, possible future market developments and the market risk signals of the respective product groups. Such information is frequently simply recorded manually. For this reason our web based entry masks are highly suitable. They are configured in just the way the project needs and that the user requests. The recorded data is then logically connected with the existing internal master and transaction data, and be integrated into calculations and algorithms wherever necessary.

This results in transparent, integrated data presentation of the internal data structures, their history together with planning data for the future including data showing influences and an exterior risks assessment. With this information always to hand the purchase department can build an optimized procurement strategy. In addition, Integrated Task Management systems can be of big help at this point. As the database is ‘live’ and is automatically fed daily with the latest data the purchase department receives a current target-performance comparison, which can be complemented by warning signals or by warning messages via email.

Benefit of software based category management for your immediate return on investment:

  • Immediate and complete transparency over the actual situation, data structure and history
  • Your basis for an immediate initiation of optimization activities
  • Linking of master data and transaction data with external data creates the basis for development of your purchasing strategies
  • Integrated task management supports implementation of the strategies
  • Daily current data feed and indicator calculations supervise the development process
  • Connection with further modules of the SC-Manager such as Supplier Management enables the creation of an extensive procurement information system
  • Integrated automatic creation of evaluations, such as the Kraljik-Matrix and reports, immediately saves extensive manual efforts

You’ll find Demo videos on our YouTube channelhttps://www.youtube.com/user/simmethsystem

Interested in further details? Please contact us via mail or visit one of our webinars.