Binding SKU-level details to general rules

As retailers live and die by their category, it's important to have a strong category management system. However, from working with retailers in different industries, from groceries to electronics, we know there are some challenges to overcome:

• Link the taxonomy to the value proposition:

  The assortment should be an indication of the seller's choice of prices, variety of ideas, and all kinds. However, there is often no consensus or agreement on the value or responsibilities of the group, meaning that decisions continue down the chain.

  Calculate the market demand:

  Different stores will attract different customers, which may be the result of the region or stores. Not knowing how to segment and group stores based on customer needs can lead to poor distribution.

  Over-reliance on qualitative criteria:

  A good choice and understanding must be balanced with professional methods such as performance evaluation, limiting the risk of prejudice, opinion and "self" that the leader undertakes in the decision making process.

  Data management:

  With so many SKUs, it can be difficult to track, manage and extract insights from large volumes of data in decision making.

  Multifunctional alignment:

  The influence of the management team goes beyond the business team and requires the collaboration of buyers, logistics, finance and others to ensure that all links work together.

  Personal characteristics that influence all ideas:

  Bonuses for business members may be based on meeting sales targets. In this case, they can go to great lengths to secure and protect a large area of ​​the floor, even if better than other owners in the category.
  
  

  Failure to address these issues can have many negative consequences, such as:
  
  

  High levels of stock or stockouts

  Stagnant revenue and sales

  Dropping profitability