SUCCESS STORY
Stronger SRM & Commercial Control
Enhancing Supplier Relationship Management for a Luxury Retail Client
- Building structured governance and commercial discipline at scale
Outcomes
Stronger SRM foundations
Developing a structured supplier segmentation framework aligned to luxury retail best practice
improved commercial control
Creating clearer governance, accountability, and supplier management processes across key spend areas
future value unlocked
Positioning the business to reduce costs, improve delivery performance, and minimise supply chain disruption
BACKGROUND
In late May, EBIT began a value-add project with one of its luxury retail clients to assess and enhance the maturity of its Supplier Relationship Management (SRM) function.
As a premium brand operating within a highly competitive sector, the client recognised the importance of stronger supplier governance and strategic supplier management to support both operational performance and brand excellence.
the challenge
The client had no formal supplier segmentation framework in place and lacked the governance structures typically associated with a mature SRM function.
Without clear segmentation policies, supplier classifications, or supporting tools such as RACI frameworks to define ownership and responsibilities across the supplier lifecycle, the organisation faced challenges in maximising value from suppliers and capturing savings within its highest-spend categories.
This limited visibility made it difficult to prioritise supplier management activities, strengthen strategic partnerships, and identify opportunities for cost reduction and operational improvement.
SOLUTION
EBIT developed a roadmap to mature the client’s SRM capability and establish a supplier segmentation approach aligned with leading luxury retail organisations.
The key changes included:
- Benchmarking the client’s SRM capability against luxury retail best practice.
- Assessing how leading luxury brands such use supplier segmentation to protect and enhance brand value.
- Designing a structured supplier segmentation framework tailored to the client’s business.
- Establishing clearer governance, ownership and accountability across supplier management activities.
- Embedding supplier evaluation criteria focused on quality, innovation, supply resilience, traceability and sustainability.
- Identifying opportunities to improve supplier performance, reduce risk and unlock long-term savings.
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