The retail industry includes establishments that are involved in selling commodities or merchandise for household or personal consumption, primarily consisting of apparel and accessories, technology, food and beverages, home improvement, specialty, pharmaceuticals, and others. The rising population, GDP growth, greater disposable income, and increasing consumer spending are fuelling the global retail market and providing opportunities for the retail segment players. However, the global economic recession, inflation, and high unemployment rates are some of the challenges that are negatively affecting this industry segment. As a result of such challenges, many retail firms have started opting for supplier relationship management to cut costs and improve relationships with their suppliers.
The Procurement Pain Point and Insights Offered
A global retail firm wanted to reshape the relationship with the suppliers to create a win-win situation and increase the profitability of both parties. Additionally, the client also wanted to gain insights on the value creation framework for the suppliers and customers. Furthermore, they wanted to identify the potential areas of risk in the value chain and wanted to gain a deeper understanding of the latest trends and developments in the market.
The supplier relationship management analysts at SpendEdge carried out an in-depth two step research methodology, which included qualitative and quantitative assessments, to cater to the specific category requirements of the client. During this study, the client was able to identify the scope and economic flows in the relationships and the value that was currently being created and captured. Additionally, the client also gained insights on the control points in the value chain. Furthermore, the portfolio analysis in this study also provided a clear representation of the qualified merits and possible prioritization of the opportunities.
Key questions answered in this supplier relationship management case study include
This supplier relationship management engagement helped the client to increase savings and boost the revenue generating opportunities. Additionally, the client was offered suggestions on the associated road maps, laying out the implementation steps and the necessary organizational changes required to seize such opportunities.