Supply Base Optimisation
Most organisations that buy products or services in the course of doing business will find their supply requirements change over time. Logic might suggest that one’s supplier base would increase, decrease or change composition based on those changing requirements, but the reality is that supplier relationships can go unchanged for years because of loyalty, history, expediency, lack of knowledge, perceived uniqueness, etc.
Finding the time and resources to undertake a full market review is often a low priority but even if it’s not, it can be difficult to remain objective and impartial. Detail4Retail can help your organisation undertake a detailed review of its supplier base, with a view to optimising its future supply profitability and reliability, by:
- Conducting a detailed and thorough review of the cost structures and capabilities of the supply base in a given category or sector – both your existing suppliers and potential alternatives
- Analysing the data and modeling cost structures for one or more supply scenarios, as agreed with you
- Recommending potential changes to your existing supplier base and/or supplier-product mix to maximise profitability both for you and your revised supplier base
The process can be tailored to your needs, and doesn’t have to be particularly lengthy or complicated, depending on the complexity of the market. All it requires is access to your suppliers, to meet with them and review their operations on site. Your team can have as much involvement as you wish – after all, they are and should remain strictly your supplier relationships.