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“Intensive pressure to discount prices has forced down margins over the last number of months”
Reduce direct costs by taking an innovative approach to re-negotiating key contracts. Deconstruct and critically challenge every link in your supply footprint to unlock hidden opportunities and cost. Ensure your working capital cycle is equally efficient.
Retailers need to understand the dynamics of customer, category, product and basket level margin. Is your store lay-out and product mix giving you the best possible return? We’ve seen a number of companies achieve savings by really analysing a number of core metrics and taking decisive action on unprofitable products and ranges.
As a consumer goods company, are you maximising your total spend on promoting and displaying your products? Discounts and rebates paid to retailers, hidden promotion and other distribution costs can account for up to 23% of the product sales price. However promotions frequently run with little regard to specific consumer segments and effectiveness is often poorly monitored. Simplifying product pricing by linking any deductions to in-store performance of the product and promotions will deliver results.
Working and sharing information with retailers also improves effectiveness by targeting customers of that particular store. We’ve improved profitability for both suppliers and retailers while also increasing customer satisfaction levels.