Category Management

Category management ... where the entire category is managed as a unit ... is one of the ways collaboration is used in supply chains today (Dunne et al. 2010)

Information about Category Management

The concept of category management originates from marketing, where managers had to decide whether to organise their sales team by product, geographically or by value/risk (CIPS: Category management). As a business process category management was first developed in the USA for supermarket retailers. In 1994 around 20% of major countries' retailers implemented the approach and a further 62% were in the development stages (McLaughlin and Hawkes, 1994). With time the concept was applied to other types of trade (Nielsen et al., 2005). Today the approach incorporates elements of business improvement processes and change management. It generally requires active participation of stakeholders, functions and individuals across the company (O'Brien, 2009).

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