Analyzing the nomenclature / category tree
Categorical analysis of the nomenclature is the basis for effective procurement
We detect duplicates, structure data, develop recommendations for automation and transition to Category Management in 2-6 weeks, depending on the scale of the business.
What is a category tree?
A category tree is a tool for assortment management and effective cost management. It’s not just a list of products, but a structured system that allows you to organize thousands of SKUs into logical categories and subcategories.
Instead of working with a messy pile of products, a category tree helps You categorize them according to different criteria:
- Physical characteristics (similarity of materials, shape).
- Purpose or use.
- Similarity of the supplier or demand market.
- An effect or influence on the company’s operations.
The main difference between an effective category tree and a simple grouping is the depth of analysis, which goes down to the level of a single SKU, taking into account management processes, teams, and budgets.
The category tree is an important tool for category managers and buyers, as it helps them move from simple sourcing to proactive procurement management. It gives them the ability to analyze costs in depth, optimize processes, and make strategic decisions to achieve company goals.
Who will it be useful for?
What kind of requests do we work with?
- Problems with nomenclature management
- Low efficiency of buyers’ workload
- Weak procurement analytics
- The need for procurement transformation
- Preparing for the transition to Category Management
- The need to automate procurement and prepare a nomenclature for this
Terms of execution
What will you get as a result?
- Classification of the entire nomenclature.
- Building the logic and structure of the Category Tree of the nomenclature.
- Detection of up to 90% of duplicate nomenclature items. This is the main reason for the “dilution” of purchases and inaccurate inventory data.
- Developing recommendations for building a logical, hierarchical and flexible category tree that reflects the specifics of the business and supplier market.
Ready to transform procurement?
Leave a request and get an analysis of the nomenclature / category tree. This will prepare procurement for transformation and Category Management.
Contact IPSM
For additional questions, contact us via phone +380633043964 or email request@ip-sm.com
