CASE STUDY

Mapping Over 90% of Spend by Creating a Proprietary Procurement Model for a Company in the Specialty Retail Industry

Dec 9, 2019

Global Specialty Retail Industry Overview

Over the past few years, rapidly growing middle class, availability of trained manpower at a competitive cost, market-oriented stable economy, and well-developed credit and financing facilities have boosted the specialty retail industry. The industry is driven by broad macroeconomic variables rather than product-specific trends. Despite this, many specialty retail stores are facing increasing competition from e-commerce and departments, limiting gains from increased consumer spending.

Business Challenges Faced

Highly competitive specialty retail markets are characterized by faster and less expensive market products. To produce the right products in the right volumes at the right time, one of our clients headquartered in North America required a proprietary procurement operating model. The procurement team of the client delivered 1500 projects to source goods/services of more than 50,000 merchandise products (GFR) to customers across the globe. Not only this, but they also managed events to source non-merchandise goods/services (GNFR). However, as the diversity of their spend grew, the client required an agile process to address the uniqueness of non-merchandise spend.

Managing non-merchandise spend in the specialty retail industry requires an effective procurement operating model. Request a free proposal to access our tailor-made procurement market intelligence solutions.

Request Free Proposal

Our Research Approach 

To cater to the specific requirements of the client, the procurement team at SpendEdge performed a specialty retail industry analysis. They recommended a procurement model that involved:

  • GNFR using a Centre-led model
  • GFR using a Centralized model

The number of suppliers in the GNFR was thrice the GFR supplier base. The center-led model required deep market knowledge of the specialty retail industry and the management of hundreds of sub-categories. With SpendEdge, the client gained greater transparency within the procurement process. Our market expertise created the opportunity for continual process improvement. Additionally, specific category alignment enabled the client to fine-tune projects to suit each spend category. The centralized model helped the client to analyze factors such as lead time, shipping time, rebate, product quality and move towards a “value” auction model. This helped the client to get the best possible terms during every purchase.

Engagement Outcome 

The comprehensive insights into the specialty retail industry helped the client to map over 90% of their spend and utilize real category management to track all upcoming exposures. Also, the proprietary procurement model created a streamlined process and resulted in new opportunities, enabling the client to increase spend under management by 35% in six months.

Gaining accurate market insights is crucial to streamline processes and increase spend under management. Request a free demo to access our web-based procurement platform and gain detailed insights. 

Key Trends That Will Redefine Specialty Retail Industry in 2019 

  • Changing preferences of millennials will require companies to engage consumers outside traditional shopping parameters and become cultural figures.
  • The number of times people who are willing to wait for free shipping has dropped significantly. Companies in the specialty retail industry will have to evaluate new ways to differentiate themselves.
  • Consumers are seeking a more engaging experience. This will require specialty retail brands to add layers and new experiences to their traditional retail models.

Recent Case Studies

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars