Examples of 4 Product Categories
Walter Hugo Coronel, Business Consultant, Argentina
As examples vary from one industry to another
and from one market to another
, this is something that has to be done inside the company taking into account your strategic drivers
Take for example one typical purchasing category: uniforms
- For a company with 20 back office employees in a city with hundreds options to buy a simple uniform this is a non critical category.
- In the same market for a company with 3000 employees, and it´s a leverage category.
- For a retail company, which sells “special branded uniform” made by a supplier with a patented technology for this uniform fabrics, with a contract to sell only thorough this reseller (this means that if the reseller is successful they are both successful and vice versa). This is a strategic category
- For a nuclear plant, uniform providers are scarce, maybe only one, which has no special interest in providing more or better, here you have a typical bottleneck, where the supplier will provide you with what they sell, not with what you need or desire.