Retail – Procurement and Supply Chain Consulting
Create long-term competitive advantages in retail
A positive shopping experience, flexible use of sales channels and high quality are all key factors required for retail procurement. Whether e-commerce, multi-channel or stationary retail, retailers are under massive pressure from strong competition, the development of different distribution channels and growing cross-channel concepts. A strong focus on the customer and a special shopping experience are key to remaining competitive and increasing customer loyalty. Efficient processes, clearly structured product range planning and flexibility in category management are of particular importance when it comes to keeping up with customers’ needs and new requirements. We provide the support you need to overcome these challenges.
The consulting experience we have built up over 1,200 individual projects in the retail sector for over 70 international customers ranges from food and non-food products for brands, industry brands and private labels to technical requirements in indirect procurement.
Our extensive supply chain management expertise enables us to quickly identify weaknesses in the supply chain and improve category management processes. This significantly improves your profits – and that is what we measure ourselves on.
How do we achieve optimization?
Reducing costs by optimizing procurement
Reducing purchasing costs is a major lever for improving results. To do this, we first carry out a potential analysis to identify potential savings in your procurement. If required, we analyse individual product groups, own-brand ranges or contractual terms and conditions with partners for branded goods.
Based on the results of our analysis, we develop suitable measures to optimize product ranges and reduce costs while maintaining or increasing quality. We then implement these measures for you, carrying out tenders with previously identified, suitable suppliers and working with you to develop an optimal negotiating strategy. The results are contracts with suppliers, which permanently secure your target savings and optimum quality standards. Benefit from our expertise and many years of experience, which are already relied upon by many specialist retail companies.
Optimizing store layout
Customer satisfaction and economic efficiency are the greatest challenges for store layout. According to a survey by the Media Economics Institute, attractive store design and product presentation are the most important reason for making a purchase. Customer requirements in terms of store layout are high: easy orientation, individuality and the desire for a shopping experience. In retail, it is vital to meet these demands, yet not lose sight of the costs. We assist in the attractive design of your stores, develop results-oriented solutions and work with you to implement them. We have many years of experience in the procurement of equipment, as well as store construction and renovation. We work with you and the suppliers to develop innovative solutions and concepts and ensure that they are implemented successfully.
Whether you are opening or renovating, we know what you need to succeed. This knowledge is based on the experience we have amassed over a total of 105 projects, our extensive supplier database and our powerful project management methods. Optimizing your store layout can achieve average savings of 18%.
Successful performance reviews for better procurement conditions
Our negotiating concept supports your procurement from negotiation preparation to the long-term implementation of the negotiated terms. Firstly, we perform a detailed analysis of performance indicators. We evaluate your suppliers’ performance and conditions based on product group benchmarks, among other factors, and the results enable us to identify important negotiating levers. Using this approach, we achieve average gross profit increases of up to 3% for brands and up to 10% for private labels. In addition, you will work with us on a performance-related basis. Benefit from our expertise in your performance reviews with manufacturers of leading brands.
Effective tools for efficient procurement
Our e-contor software is a powerful tool for your buyers in both direct and indirect procurement. It makes compiling reports, tenders and negotiations significantly more efficient. If needed, the tools that we use in our projects can also be made available to you for the long term.
Time for multi-channel retail? We reorient your procurement organization.
When observing the change already taking place in the industry, it is clear that multi-channel approaches are continuing to grow. Stationary retail is moving more towards e-commerce, while, in contrast, previously online-only retailers are opening physical stores. The goal is to optimize the buying experience across all channels. To do this, supply and service must be made as suitable and convenient as possible for the customer. We provide the support you need to develop multiple channels or expand your existing multi-channel concepts to full cross-channel retail, working with both online retailers and companies in stationary retail.
The fundamental decision: integrated or separated procurement organization?
We provide you with the necessary basis to decide on either an integrated or separated procurement organization, and examine the division of tasks between procurement and category management with the aim of establishing the new organization as efficiently as possible.
Product range analysis and planning
We offer a practical product range optimization solution for multi-channel providers in our specially developed approach, Category Management 2.0. Optimizing your product range is no longer seen as a separate process, as Category Management 2.0 focuses on your overall corporate strategy. Specific product range analysis and planning not only includes your physical stores; if you have or add other sales channels, the product range must be planned and offered accordingly. We support your product range planning and create the basis for deciding which product groups will be offered online or offline in a physical store.
After developing the concept, we work with you to implement it. Our multi-channel retail study shows that IT and marketing costs are often underestimated when establishing a multi-channel system, and there are also high logistics costs involved in shipping and e-commerce. We identify the best, most cost-effective partners and providers for you in IT, digital media, marketing and logistics, and new suppliers in terms of product range procurement, for physical stores, e-commerce and multi-channel options.
Increase your results decisively – We support you from the negotiation preparation to the complete implementation of the negotiated conditions.
Dr. Frank Wierlemann and Dr. Kiran Mazumdar are at your disposal for any questions regarding procurement and SCM consulting in trade. Do you have any questions or would you like to get to know our range of services in more detail? We look forward to hearing from you!