Our previous clients include:

Industry - Retail (Leisure)

Issue

• A leading UK & Eire Leisure Retailer asked us to implement the first part of their new Purchasing Strategy focusing upon two commodity groups
• The strategy having previously been determined in another project. As part of the review we were also asked to review options for their ‘in house’ warehousing and distribution function

Solution

• As the strategy had been developed 9 months earlier a new analysis of spend was conducted to reconfirm previous savings estimates
• Two commodity groups (General Office Stationery and General Printed Matter) were then analysed in detail to generate ‘baskets of spend’ that could be offered to the marketplace
• These ‘baskets of spend’ were then offered to the market via a competitive tender process
• Volumetrics and costs of the ‘in house’ warehousing and distribution function were analysed to produce a simple cost model that allowed a range of future options to be developed. The ‘pros’ and ‘cons’ of each of these were assessed at a high level to determine a potential way forward

Benefits

• Following the competitive market tendering of the two commodity groups forecast savings of 10-20% were achieved for General Office Stationery with a further 20-30% savings for General Printed Matter
• The strategy adopted also allowed for a number of other commodity groups to be included within those tendered, thus delivering further immediate savings
• Additionally the strategy chosen supported the recommended strategy with regards the ‘in house’ warehousing and distribution function thus potentially realising further significant savings