If you want to improve your profitability maybe it’s time to look at a private label program.
Here is an old post from a couple of years ago that continues the theme of the last two days titled What type of savings should we see when we source Private Label items Part I and Part II. The information is a little more basic but does supply some reinforcement for the last two posts and links to where you can learn more. Enjoy!
If you already have a private label program maybe it’s time to grow your offering or increase your mix of private label products.
According to Wikipedia Private Label goods and services are available in a wide range of industries from food to cosmetics.
Historically these products or store brands were positioned as low cost alternatives to major national and international brands. Today if you read the labeling many of the products are virtually identical and in some cases companies are positioning their brands as better or premium to the large brands.
A great source if education is The Private Label Manufacturer’s Association or PLMA. Their website is www.plma.com. PLMA sponsors an annual show which this year is being held in Chicago the 14th-16th of November. This show is full of great workshops as well as manufacturers that would be glad to compete for you business.
According to GfK Roper, 57% of all shoppers now say that they purchase store brands which represents a 21% increase from ten years ago and an impressive 38% growth rate.
E-procurement tools typically assigned to the e-RFX suite are an ideal way to source these products and will help to drive your costs even lower. Start with an RFI to select the companies or manufacturers you are interested in partnering with and then invite the best few to bid for your business.
Contact a SafeSourcing customer services representative in order to learn how we can help you optimize your Private Label program.
We look forward to and appreciate your comments.