Buyer's Brief: The Secret’s In The Sauce
Nick Peksa examines the importance of data in a retail context, especially when dealing in categories subject to commodity price volatility. This article appeared in ESM Issue 5, 2018.
Over the years, category management has developed into a systematic process designed to maximise category value by segmenting spend into similar supply and usage factors (shelf space).
Through the use of market intelligence and other analytical tools, we can analyse a lot of data, ranging from supply cycles, cost drivers, supplier cost structure and competing suppliers, to future trends in the market.
Through investigation of our suppliers, we can gain an excellent understanding of labour costs, profit margins, overheads, and, to some extent, the value of non-volatile raw-material pricing. However, we cannot control the volatile raw materials that go into our products. Volatile raw materials can make or break a category if we gamble and take the wrong approach.
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