Spend Analysis Solution Helps A Renowned Fashion Retailer Benchmark Their Performance Against Market Developments
Overview of the Fashion Retail Industry: The fashion retail industry has witnessed several fascinating changes as well as challenges in the past few years; these are the primary indicators of the evolving fashion retail market. In order to harness the concomitant benefits, the challenges associated with these changes need to be addressed most efficiently and […]
Overview of the Fashion Retail Industry:
The fashion retail industry has witnessed several fascinating changes as well as challenges in the past few years; these are the primary indicators of the evolving fashion retail market. In order to harness the concomitant benefits, the challenges associated with these changes need to be addressed most efficiently and prudently. The most critical factor that determines the success of fashion retailers lies in their ability to gauge the retail industry trends in accordance with the consumer’s purchasing decisions. Also, the increase in disposable incomes, exposure to international events, and the rapid changes in the lifestyle of the global population are driving the changes in the consumer purchase behavior.
Let’s take a look at the key retail industry trends that are shaping the future of the global fashion retail market:
- Application of technology: Rapid advancements in technology have brought about several changes in various sectors including the fashion retail segment. In a world that is rapidly adapting to the evolving technological changes, fashion retailers have to ensure that they deploy the right technology to enhance their business efficiency. Technology also has great potential for attracting consumers to retailers irrespective of the format.
- Environmental concern: The aspect of green marketing will ramp up the retailer’s vigilance on the environmental friendliness of the company. Eco-friendliness is also a critical performance metric for retail organizations across the globe.
- Customization of product portfolios: The success of any retail firm lies in its ability to attract consumers belonging to different socio-economic strata. This necessitates excellence in product packaging and practical structuring of product portfolios.
Though several such factors are favoring the growth of the global fashion retail sector, they also give rise to challenges related to effective spend management. To overcome such difficulties, leading players in the fashion retail industry are now leveraging spend analysis to devise and implement better sourcing strategies.
The Business Challenge and Journey:
The client, a leading player in the fashion retail industry with several international business units, was looking at developing robust spend analysis capabilities. Not surprisingly, the fashion retailer found itself battling several issues that arise while employing acquisitions and mergers as a growth strategy.
Moreover, the company’s sourcing executives recognized the tremendous scope for streamlining their processes to achieve cost savings in indirect and MRP spend. As such, they were looking at reducing their maverick spend and increase their net income. Also, the client was looking at setting industry-specific benchmarks to assess their performance against the market developments.
To identify challenges in the supply chain activities, the spend analysis experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the fashion retail industry. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage spend analysis?
SpendEdge’s spend analysis offers end-to-end solutions that reduce the overall purchasing costs and enhance the value of supplier relationships. Also, the spend analysis data will help organizations in improving their business processes to increase the overall efficiency.
Spend management acts a guide for firms to devise standardized procurement processes. Therefore, it’s essential for every organization to leverage spend analysis and gain a better handle on its supply chain processes. Furthermore, implementing the best practices in spend management provides an extra boost to increase the company’s profit margins.
Fundamental questions answered in this spend analysis study include:
SpendEdge’s spend analysis solutions offered relevant insights that helped the client to develop robust sourcing strategies and cut down on maverick spend. It also assisted them in optimizing their working capital by identifying categories and suppliers with lower-than-policy-level payment terms that offer a great starting point for freeing working capital. Moreover, spend analysis solution provided valuable insights that helped the client in identifying price arbitrages. Our solution also assisted them to benchmark their performance against market developments to ensure that they perform well and keep up with the market developments.