An analysis of suppliers’ roles in category management collaboration

Category management (CM) seems to bring many positive elements to supplier–retailer interaction, e.g., continuous collaboration instead of repeated competitive biddings and knowledge sharing instead of knowledge withholding. However, its nature cannot be understood without understanding the roles of the collaborating suppliers. Hence, the purpose of this article is to address the following research questions: (i) in the Finnish context, how suppliers perceive their role (i.e., their ability to provide input on CM tactics) related to their competitors in CM collaboration; and (ii) whether the effects of CM are perceived differently in groups of suppliers. The sample consisted of 89 representatives of fast-moving consumer-goods categories in the Finnish grocery industry. The study revealed that the large suppliers had a relatively strong role in CM collaboration, while the small suppliers had a weak role in CM decision-making and were easily excluded. ANOVAs indicated that suppliers with stronger or equal roles compared with their competitors were also more capable of influencing the most CM tactics. Furthermore, the effects of CM were perceived more positively among suppliers who were more capable of providing tactical input than among those with a weak collaborative role. This article offers new information about the different roles of suppliers in CM collaboration. However, more theoretical as well as quantitative and qualitative empirical studies are needed in order to increase knowledge about the nature and consequences of this topical management practice.