In the retail industry, the proficiency of the retailers is determined by the ability to deliver the products and services at the right place, right cost, and at the right time; while paying attention to the quality. Apart from the conventional warehouse management, retailers across the globe also face challenges in managing their inventory, which involves effectively keeping track of stocks and costs. In the home care products retail space, companies have started leveraging the use of cost benefit analysis to meet the rising demand of the customers while reducing expenditures across the supply chain.
To gain a complete understanding of the cost structure for their supply chain activities, companies operating in the home care products space have started approaching SpendEdge. With years of expertise in offering cost analysis solutions, SpendEdge helps home care products retailers accomplish a competitive edge over the peers by framing superior negotiation strategies with suppliers.
The Procurement Pain Point and Insights Offered
A leading home care products retail client with business units spread across the globe was facing predicaments in devising the most cost-effective strategy for risk reduction. Additionally, the client wanted to estimate the financial severity of the data center’s loss and predict the probability of such an occurrence. Also, the client wanted to gain actionable insights into the negotiation levers adopted by suppliers.
To cater to the home care products retail client’s predicaments, the cost benefit analysis experts at SpendEdge tailored an extensive research. This research methodology included primary and secondary research coupled with qualitative and quantitative data collection procedures.
During the course of this cost benefit analysis, the home care products retail client was able to identify the most critical issues related to the expenditures through sensitivity analysis. Additionally, the client was able to forecast the annual average loss. This helped them address the issue and gain a competitive edge over the competitors in the industry.
Key questions answered in this cost benefit analysis include
This cost benefit analysis engagement helped the home care products retail client identify the most cost-effective blend of countermeasures. Additionally, the client achieved a cost saving of 3 million dollars. This engagement also motivated the client to implement the recommended improvements.