We help numerous retail and wholesale clients leverage our Strategic Sourcing services to grow market share by increasing cash flow and reducing indirect spend
In the highly competitive retail industry, pressure is always increasing for retailers and wholesalers to grow while increasing their margins. However, this is easier said than done.
Procurement teams within retail and wholesale organizations do an outstanding job on high-volume direct goods and materials, and also on some high profile indirect spend categories, such as rent. However, it can be challenging for any team to be expert in every single spend category. Successful retailers are continually improving the buying experience by offering new types of stores, products, and services at an increasingly better value. They also have the less glamorous day to day operational expenses to worry about. Corcentric Strategic Sourcing services helps retailers and wholesalers increase their profitability and keep up with demand by bringing additional resources, value, time, tools and market intelligence to the sourcing process.
By leveraging Corcentric as a team member, retailers are able expand their resources to reduce spend in costly direct and indirect categories.
Direct Spend and Direct Materials
Whether you run a chain of hardware stores or maternity apparel, chances are you don’t have the resources to get to every single direct spend category. Be it finished goods, or the materials and textiles needed to build assembled products on your own, we can help. Rather than hire experts for every single product in your stores, you can rely on Corcentric’s substantial industry experience to drive savings and quality products into your showcases.
Indirect Spend
Corcentric’s team of experts work in tandem with retailers to build internal capabilities to reduce spend on indirect spend categories, which can amount to 40% of total retail costs. Our proven strategic sourcing methods, our experienced teams, our sourcing technologies and our cross-industry market intelligence provide decreased procured costs, flexible vendor management opportunities, and enhance the collaboration between retailers and vendors. We help to introduce new technologies, new methods, improved contract terms, and expand global retail supply bases. With the expertise of experienced sourcing professionals, retailers can reap the benefits of reduced costs and concentrate on investing in growth and meeting the demands of consumers.
Corcentric helps retail and wholesale clients reduce costs across multiple indirect product and service categories, including:
- Utilities
- Telecommunications – Wireless (Internet, Data Services, Conferencing Services)
- Travel & Lodging
- Packaging Supplies
- HVAC Contracts
- Merchant Accounts (credit card processing fees)
- Waste Management
- Freight
- Insurance
- Advertising
- Leases and Lease Recoveries
- Market Research
- Office Equipment
- Printing
- Payroll Services
- Safes
- Security Equipment
- Software
- Uniforms
- Janitorial Services & Supplies
- And many others
While Corcentric has been able to produce significant savings within non-product retail spend categories, our expert team is fully capable to source direct products for retailers as well. We have had the opportunity to work with national retailers to reduce their visual merchandising costs and other direct spend categories including store fixtures, merchandise displays, and merchandise categorization supplies. We understand that vendor risk is an important factor and we work with your internal team to proactively identify and avoid vendors with financial and operational risks that could disrupt your supply chain. Our strategic sourcing best practices help retailers align their organization with sourcing goals and objectives that are significant to growing market share.
Cost reduction opportunities for retailers
Utilities and Energy Sourcing
By continuously tracking market conditions, futures, and trends, as well as identifying low energy consumption periods or peak decline periods and moving quickly to lock in rates for electricity, Corcentric works with customers to choose competitive and effective utility suppliers in the marketplace.
HVAC Contract Cost Reduction
Acting as an extension of internal resources, Corcentric ensures the correct T’s and C’s are in place and manages contract implementation to confirm service compliance. We help customers leverage service specifics such as input product inclusion, warranties, and maintenance agreements as well as aggregating various locations into one agreement to potentially escalate savings opportunities.
Waste Management Cost Reduction
We work with customers to help improve waste management rebate programs, collaborate with suppliers to establish controls around ancillary fees such as fuel and environmental surcharges, and use unmatched market intelligence to compare rates of similar customers and vendors for competitive analysis. Our team can also continuously track invoices to ensure new pricing is implemented.
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