In recent years, the importance of purchasing organizations in companies has changed fundamentally. From a pure "Total Cost of Ownership" model, in which the idea of cost saving potential has revolutionized, purchasing today is ascribed a much more strategic role. By introducing category management, purchasing creates a change that places qualitative values such as performance and supplier quality in the focus of the procurement strategy. In this way, the company provides the basis for successful supply chain management.
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The changes in the procurement markets caused by high competition and low product life cycles have also led to a change in the orientation of procurement management. Over the past ten years, the relevance of strategic category management components in companies has increased dramatically and thus reflects the lasting significance of the customer-supplier relationship.
Whereas in the past the success of purchasing was measured using cost-based KPIs such as savings potential, today success means building long-term relationships between manufacturers, retailers and customers. Only through close exchange and trusting relationships can doors to external markets be opened which is necessary for long-term survival in the market. The aim should be to form and further develop the industry and the retailer together into comprehensive product groups based on the consumer's point of view and needs, in order to promote sales and generate new sales.
Innovation, growth and further development are the new buzzwords of strategic purchasing and category management, these form the basis on which manufacturers and retailers center customer needs and jointly strengthen their market position. The days when retailers exploited markets and suppliers, and price dumping revolutionized procurement are over. By introducing category management, every company creates an interface between customers and suppliers in addition to purchasing. In addition, the close interaction between marketing, purchasing and sales ensures a continuous exchange and the integration of customer-oriented perspectives in the processes of the supply chain. The need for targeted strategies in purchasing and category management is therefore essential for the company to survive on the market in the long term.