Ebit has worked with many retailers to review their incumbent suppliers of consumables. Working to identify opportunities for cost reduction, service improvements and supplier rationalisation when required to deliver value to our client.
Client Overview
Working with an established health and well being retailer to review their incumbent suppliers for consumable goods across all sites including warehouses and shops. To review their incumbent supplier to ensure that value was being delivered consistently and ensure that suitable Supplier Relationship Management was being undertaken on any future relationship.
Our Approach
We worked with our client to understand the current picture of the relationship with their supplier, the processes in place and volume of activity and transactions being processed across the business. By reviewing the existing spend data from the supplier and our client we were also able to identify spend which was not being delivered through the existing relationship and which was qualified as leakage which also needed to be addressed. This amounted to just under 4% of the annual spend.
Following extensive supplier research, stakeholder discussions and using our extensive benchmark data we were able to identify that the supplier relationship had been allowed to drift, leading to a loss of oversight and appropriate controls. we advised our client to run a full RFP, including their incumbent supplier, to ensure that they were achieving best value and access to the best service available
Results
11% savings delivered
Improved SRM implemented, including improved technological support and improvements to MI and reporting supplied to our client
New KPI's established to ensure relationship remains "fit for purpose"
Additional benefits around storage and despatch of goods also negotiated, providing added value
Within our client internal education piece launched to re-enforce understanding of process across all sites