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ibs Category Management

IBS CATEGORY MANAGEMENT – DETAILED PROCESS

ibs Category Management, a business process-oriented solution, could be analyzed in 5 main steps.

ibs Category Management

“DELIVER DRAMATIC RESULTS TO SUPPORT A VARIETY OF ORGANIZATIONAL GOALS”

PHASE 1: PREPARATION AND DECISIONAL ANALYSIS

Provide to users with the necessary and accurate information to help him in his preparations and simulations. Such as:


  • Review of past and realized performance
  • Automated forecasts for the non-realized months
  • Adjustment and validation of forecasts for the non-realized months
  • Market and competition analysis (sample data, competitors data): market share, numerical detention, positioning, weight and evolution of segments
  • Internal analysis: history and landing of moving data: turnover, sales, margin, volume, purchases, stocks, price, promotion weight
  • Analysis of sales profiles of categories and items: trends, seasonality effects…
  • Comparative analysis between retailers, sales channels and sales tools
  • Process specific analysis: vendors management, assortments and promotions

PHASE 2: STRATEGY SET UP

Creation of the global strategies using quantitative and qualitative information

  • Definition of categories roles: on the basis of the offered services to the consumer, on the competition level, on the retailer positioning, selection of a category role managed by date:
    • Traffic builder
    • Profit generator
    • Image enhancing
  • Strategic visions by category: development of market share, category weight and stabilization, or removal.
  • Definition of strategies and orientations to take on global and skill axes:
    • Price policy (positioning price range either compared to competitors or compared to other group entities)
    • Supply strategies
    • Promotional efforts
    • Product strategies
    • Merchandising strategies…

PHASE 3: OBJECTIVES SET UP

The General process is:

  • Definition of the global company objectives
    • Multi-level definition
    • Multi-actor process
    • Multi-validation process
    • Using standards dimensions like store entities, calendar and elements of merchandise hierarchy
    • Using other dimensions like brands or product types

  • Definition of the multi-user with different methods
    • Top-Down with the use of repartition keys on down levels: corporate number is broken down on calendar basis, and/or PHE elements.
    • Bottom-Up with consolidation on the upper levels: consolidation on calendar and/or PHE elements.
    • Mixed and Crossed with 2 processes in parallel and scope management on defined level
    • System insuring that all targets are consistent across levels

  • Each actor interferes at his competency level

  • Flexibility selection of structuring axes: each process has its own specific indicators, and breakdown across dimensions:
    • Assortment process by additional dimensions: brand types, brands, vendors, and product types. Or with additional indicators like numbers of products, space…and by calendar and time frame (yearly)
    • Promotional process by additional dimension: media, additional indicators (promotional weight) and calendar and time frame (monthly or weekly)
    • Vendor management process by additional dimension (vendors), additional indicators (purchases, condition types) and calendar and time frame (monthly)

  • Key Performance Indicators: Company profits and losses account using standard and specific indicators:
    • Purchases and sales turnover, volume of ordered/ sold items, different types of margins in value and rate, fees and charges, gross and net results, growth (sales, margins and units ), baskets, number of products…

The aim is to focus on ibs Category Management objectives building. The goal of building objectives is to define the future activity period:

  • Planned cashed inflows
  • Planned expenses
  • Planned profits/benefits
  • Allow Retailers to follow up on gaps between real data and objectives
  • Allow Retailers to analyze the gaps
  • Allow Retailers to take corrective actions or modify the objectives

Some examples of operational and financial objectives:

  • Turnover data: sales, purchases, promotions (volume and rate) and operational costs
  • Margins (volume and rate)
  • Results (volume and rate)

The Objectives are defined according to :

  • Users expertise
  • Economic context, position and market
  • Period of time, future period of time
  • Historical data
  • Forecasts of current period
  • Merchandise perimeter
  • Entity perimeter (country, area, store format, store…)
  • Calendar perimeter (year, month, week…) and Planning with timelines/deadlines
  • Activity type, promotional, seasonal…
  • Other perimeter (brand, vendor type, vendor, media…)

PHASE 4: CATEGORIES PLANNING
  • Objectives definition and update on the oriented needs (customers, vendors, operational)
    • Purchases: supplier, negotiation perimeter (tariff group), brands types, purchases, conditions types…
    • Assortment (permanent, supplementary, seasonal, promotional): number of items, sales spaces…
    • Commercial incentives: promotions weight
    • Pricing: entity, store competitor region, price and margin position, trading area…
    • Merchandising, logistic indicators, financial ratios constraints…

PHASE 5: IN YEAR FOLLOW UP
  • Activity follow-up in real time
  • Performance analysis: results versus objectives and forecasts
  • Identification of gaps and alerts generation
  • In year re-forecasting (automatic and manual) based on actual results
    • Validation process around re-forecasting for possible objectives updates
  • Definition of corrective actions (by definition of new qualitative and quantitative objectives on the Business axes for example)
  • Simultaneous combination of analysis and operational tasks

ibs Category Management can deliver dramatic results to support a variety of organizational goals, through an effective application and modulation of the process. It can directly answer to the drivers of the organization and the sector. It operates within any specific market conditions, as well as prevailing macro-economic.


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