A Leading Retailer in the UK Realized Savings of £50 Million by Reducing the GNFR Expenditure

UK Retail Industry Overview

Companies in the UK retail industry face ever-increasing pressure to retain their market share. They consistently need to drive value and differentiate their offerings through innovation or marketing strategies to grow their market share. Margins are constantly under strain and retailers must be creative when looking to cut costs and grow revenues. This case study is a classic example of how we helped a renowned company in the UK retail industry to realize savings of £50 million by reducing the Goods Not for Resale (GNFR) expenditure.

Business Challenges Faced

A renowned company in the UK retail industry was looking to drive maximum benefit out of their Goods Not for Resale expenditure. They recognized that inflation and the stagnating economy were increasing pressure on the UK retail industry and the competition for market share would only intensify. Margins were consistently reducing amidst weakening demand and rising costs. In such a scenario, GNFR procurement could be one of the ways to support top-line growth of the company. The client, therefore, approached SpendEdge to gain a tailored solution to their complex business model and improve ROI from GNFR procurement.

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Our Research Approach

To cater to the specific requirements of the client, the experts at SpendEdge conducted a retail procurement market intelligence study. This phase of the engagement helped the client to identify categories within the GNFR supply market that required market insights to procure effectively. The next phase of the UK retail industry analysis involved assessing the low value transactions and minimizing GNFR expenditure managed within individual business units. This helped the client to minimize excess spend and adopt a centralized approach for GNFR procurement apart from improving economies of scale.

Moreover, UK retail industry analysis helped the client to reposition and redefine procurement within the business, mitigate supplier risk, and implement best practices for procurement to improve operational efficiency. This improved cash flow, enhanced spend visibility across the business, and ultimately returned greater value to their shareholders by better managing their GNFR spend.

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Engagement Outcome

The customized UK retail industry analysis helped the retailer to realize the set target of £50 million in-year savings. In addition to this significant bottom-line saving number, procurement strategy aligned with business strategy helped the client to increase spend under control and improve value through greater TCO management.

Aligning procurement strategy with business strategy requires companies to perform UK retail industry analysis and obtain specific insights. Subscribe now to enjoy free access to SpendEdge’s pricing insights into the UK retail industry.

UK Retail Industry Trends 2019

Retailers will need to invest in their workforce due to shifting employment landscape.
Advanced technologies such as big data, machine learning can now be leveraged by businesses of all sizes.
Businesses with small-format stores that carry little to no inventory will continue to emerge.

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SpendEdge’s Inventory Management Solution Helps A Leading Wholesale Retail Industry Client Market Their Products Quicker Across Different Sales Channels

Project Background

A leading wholesale retail industry client evaluated their existing B2B supply chain in China and recognized the requirement to adapt it to accommodate a B2C model, where they would be selling their products directly to consumers. The transformation required an alteration in mindset as well as capabilities that the customer did not have within their current staff.

As a result, SpendEdge suggested various types of inventory management techniques to help the wholesale retail industry client overcome their challenges.

SpendEdge Advantage

As an international strategic partner for leading Fortune 500 companies across various industries, SpendEdge’s strength lies in delivering robust real-time procurement market intelligence solutions that help companies identify the various types of inventory management techniques to make informed decisions.

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Client Profile

A leading wholesale retail industry client based out of India was facing challenges in finding a qualified partner, familiar with omnichannel fulfillment and with a proven track record in developing solutions for companies like their own, became their main priority.

Predicaments

One of the primary objectives for the wholesale retail industry client was to develop a customized solution to bridge the inventory gap and incorporate different types of inventory management techniques with respect to B2C in their capabilities.

Solutions Delivered

The solution revolved around identifying the most effective inventory management techniques to fulfill both B2C and B2B needs in China. The analysis also led to the recommendation to increase the focus on a warehouse in Beijing that would allow the customer to get their products to market quicker across different sales channels. This further helped the client improve margins by cutting out the middleman. The wholesale retail industry client has also begun discussions on expanding into additional countries as a strategic differentiator.

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Most Popular Retail Industry Trends This Year

Shopping is now gradually becoming less of a chore and more of an experience – all thanks to the latest retail industry trends. Customers are becoming more demanding, which makes it important for retailers to become open to change. Modern consumers are emphasizing more value on experiences over physical items or commodities. So, when shoppers purchase tangible products other than regular commodities such as groceries, they expect those products to either tell a story, be completely unique, fit into their lifestyle, or all of the above. Retailers who aim to retain their existing customers and gain new ones must keep track of the current retail industry trends so that there are in line with what customers want. This blog from SpendEdge sheds light on some of the retail industry trends that are garnering equal popularity among customers and retailers:

Visual Search

Visual search is one of the most advanced retail industry trends today. Imaging the convenience and ease that a consumer could gain by just snapping a photo of the desired product to generate relevant search results rather than relying on a word-based search query. Visual search technology utilizes machine learning algorithms to recommend and search products online based on the matching attributes of the photo of the product shared by the customer. The results generated are of products with a similar shape, color, pattern, or even texture. This technique is particularly suited for retailers with large inventories or search results.

Predictive experiences

Top companies in the market are leveraging innovative technologies such as predictive modeling, machine learning, and artificial intelligence to predict customer behavior and generate right-on-target messaging and product recommendations. These high-tech retail industry trends are also being used by retailers to hyper-personalize a customer’s shopping experience, especially in the case of online shopping.

Shopping is now gradually becoming less of a chore and more of an experience - all thanks to the latest retail industry trends. Click To Tweet

Rise of digital mobile wallets

Mobile phones have now become an indispensable element of our lives. The use of mobile phones as a medium of payment is one of the most prominent retail industry trends this season. Smart players in the retail industry have already caught on to this trend. They are now providing seamless mobile payments by adopting APIs. Adopting flexible payment methods will help retailers provide their customers with ease of payment and convenience.

Customer-controlled delivery and return

Today’s customers want products that are available exactly how, when, and where they want them. Smart companies are giving in to these demands by putting control in the customers’ hands. Several top companies have also introduced the concept of purchase online and collect in the store, which allows customers to pick up their orders faster than what it would take for an e-commerce order.

Growth of social media

Social media is one of the most effective platforms for businesses and customers to connect with one another. The use of social media will continue to be one of the most effective retail industry trends in the years to come, considering the fact that majority of the customers are hooked on to this platform. Retailers will need to up their game by using social media and social apps to tell stories and engage with fans in real time rather than simply posting photos or updates.

To know more about the how companies can successfully implement the latest retail industry trends

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