A large ongoing number of smaller volume suppliers presents opportunities to consolidate spend, thus increasing buying power and making it more likely that the client becomes a “client of choice”.
Client Overview
Ebit worked with a fast-growing retailer with both a bricks-and-mortar store estate and an e-commerce operation. The client had a large, fragmented GNFR supplier base that had grown with it as it expanded across Europe.
Our Approach
Ebit delivered a consumables supplier rationalisation project to simplify the supply chain and consolidate costs and buying power. We identified inefficiencies such as delivery delays leading to stockpiling issues, which was bad for cashflow.
Results
- Ebit delivered savings of 19%
- A reduction of consumables suppliers from 45 down to 1
- Other benefits included single-invoice, extended payment terms and payment for stock on call-off rather than up-front
- The chosen supplier also managed stock and volumes to aid demand management and delivered on a next day basis to give confidence in the supply chain.
- SLAs and commercial terms incentivised the supplier to deliver great service and benefit from future cost reduction achieved
19%
Saving on Supply