WAYS TO MAKE A DIFFERENCE
This leaflet highlights areas
where retailers are finding ways
to make a difference – increasing
growth and profitability in the face
of petition and
more discerning customers.
1 margins through strategic sourcing
2 Boost short-term revenues category-by-category
Convert planning systems investments into profits
3 Contents
4 Maximise returns from own-label
5 Drive brands for mutual benefit
6 Increase space productivity through store clustering
7 Target on-shelf availability to cure multiple sins
8 Build loyalty amongst high-value customers
9 Adopt factory-gate pricing for both efficiency and effectiveness
10 Prioritise global expansion
11 Focus on core skills and capabilities
1 Strategic Sourcing
SOURCING GROUPS PROCUREMENT PORTFOLIO POSITIONING
+ NURTURE STRATEGIC
NON-CRITICAL LEVERAGE
Business Impact
Sourcing -
- +
Groups Supply Market Capability
OPPORTUNITY PRIORITISATION STRATEGIC SOURCING APPROACH SELECTION
Savings
opportunity
WAVE 1
Volume Product
Concentration Specification
WAVE 2 Improvement
M
WAVE 3
L
Joint
K Best Price STRATEGIC Process
J I Evaluation SOURCING Improvement
O
D M
Q
N
P
H
C
S Global Relationship
E G Sourcing Restructuring
A B F T
Low High
Ease of Implementation
MARGINS 1
through strategic sourcing
A "one-size-fits-all" approach to dealing with your suppliers is unlikely to get the best out
of them, or petitive advantage for you. Driven by the customer, each
product/market segment requires different relationships with each supplier:
• Price-focused, or multi-dimensional criteria for supplier selection, ., product quality
and innovation
• Responsive or just cost-efficient supply-chains
• Measures and incentives tailored to the supplier role
Strategic suppliers need encouragement to invest in innovation for longer-term growth.
A low-cost strategy may be more appropriate modity suppliers. Strateg
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