It’s no secret that the Covid-crisis hit the retail sector hard this year, and while not every retailer weathered the storm, those who did will come back fighting. And you’ll be one of them – but only if you adapt, evolve, and future-proof where you can.
One area that you can realise real returns is GNFR (Goods not for Resale); or indirect spend.
For many retailers, indirect spend is spread across multiple suppliers – leading to poor data management, lack of transparency, and inconsistent compliance.
Despite this, GNFR often remains unmanaged because time and resource is scarce. But it’s an entirely false economy: gaining control of GNFR (and understanding the soft costs of multiple orders and deliveries) can deliver some pretty big savings to be reinvested in your company or injected straight into your bottom line.
Indirect spend covers everything that supports your business operations, outside of the production of the goods or services you offer your customers, and typically makes up between 25%-40% of your total spend. That’s a pretty big number to leave unmanaged.
With margins under strain, it’s time for retailers to get a little more innovative in their approach to cutting spend.
Consolidate spend; save time; improve quality
Is this relevant to you?
If your ability to make informed decisions is clouded by a lack of real-time data; if your team is spending time searching for in-budget products that don’t deliver on quality; if your organisation could benefit from greater visibility and control of spend then yes, it’s relevant now more than ever.
The retail sector will face new and unprecedented challenges in the year ahead, and because Office Team understands this better than most, we’re doing everything we can to help you thrive in 2021.
Wondering how we do it?
• Range: You’ll have access to over 100k products and a specialist sourcing service
• Continuity: You’ll find the products you need, when you need them, at a competitive price
• Business Intelligence: You’ll benefit from real-time data; allowing you to make informed decisions and forecast in a rapidly changing market
• Visibility and control: You’ll effortlessly curb soft costs by reducing the time associated with multiple orders, invoices and deliveries
It’s all about making things simpler; making your life easier.
If you’re a multi-site retailer, it’s probable that your GNFR expenditure is geographically dispersed across different business units. The problem with a non-centralised approach (aside from the management headache) is that rogue spending behaviour has a tendency to increase. In addition, any economies of scale that can be achieved through a centralised provider are lost.
Knowing what you’re spending and who you’re spending it with, reduces the risk and expense associated with non-compliant (or underperforming) vendors. It also allows you to build trusting relationships; something that’s often missing when your supply chain isn’t streamlined.
And of course, the big one: better management of GNFR through a trusted, centralised supplier increases the availability of cash; which in 2021, will be crucial to survival. But it does require a shift in behaviour.
Historically, retailers have been reluctant to outsource GNFR; instead, choosing to retain control in-house. But partnering with a specialist like Office Team can bring a level of innovation that simply cannot be achieved internally. We give you the tools to flex your procurement resource in line with market demand – and we have the technology to back it up.
Even before the events of 2020, data-driven organisations were 23x more likely to outperform their competitors, which is why we developed SmartPad.
A new, robust approach to management reporting and business intelligence, SmartPad provides real-time data. This is essential in what is currently a tumultuous, ever-changing market.
Through SmartPad, you’ll find it easy to forecast and make crucial business decisions around your indirect spend. And it’s this ability to remain flexible, agile and evermore efficient that will ultimately future-proof your organisation for the difficult year ahead.
Strategic sourcing is where it’s at, and that’s everything we stand for.
It’s time to reset your approach to GNFR
As a one-stop solution for your GNFR supplies and services, we’ve got bags of experience in helping large-scale organisations gain control of indirect spend.
With solid stock levels and strong, reliable relationships, we’re agile, fast-moving and can react quickly to your needs – allowing your staff to stay on the shop floor with your customers, instead of handling multiple orders, invoices and deliveries.
As a first step to taking control of indirect spend, we’ll assess your current GNFR supply chain:
• Identifying risks
• Uncovering untapped opportunities
• Negotiating better pricing and service levels
• Leveraging your buying potential