Supply chain technology continues to evolve daily but the benefits of what has been available for over a decade continues to elude many retailers, and it should not.
Nothing else that a retailer is doing including remodels, customer marketing campaigns, new formats, new products or any thing else focused on sales increases can have the impact on your bottom line that e-procurement tools can. If you choose to use hosted or SaaS based offerings, the cost is so low as a percentage of savings that it’s almost silly. If you want to free up some cash in order to fund those other opportunities mentioned above now is the time to reach out to companies like SafeSourcing.
Cost of goods and services is the largest area of retailers P&L. Focus on this area can drive cost from their business immediately. Since the early 1990’s, initiatives focused on the customer in the form of CRM programs, Efficient Consumer Response initiatives, and Large scale data warehouses or decision support systems have been implemented, but have not appreciably improved the bottom line for many retailers.. E-procurement solutions immediately improves the effectiveness of buyers and category managers by offering them a broader universe of choices over a shorter period of time, without the need to conduct detailed research, and as such makes their job easier.
Calculating the dollar and percentage return on investment at the conclusion of an e-procurement event is immediate so the ROI in most cases is also instantaneous. Historical savings in the retail industry have averaged as much as 20% and in many cases has been as much as 10X or greater. In almost all cases these are direct savings versus budgeted expenses. As such the dollars drop directly to the bottom line and can easily be converted to basis points of improvement that are factual and reportable within a current quarter. To this authors knowledge there are no other applications or tools that can make this claim.
If you’d like to learn more as to how SafeSourcing can improve your earnings, please contact a SafeSourcing customer services account manager.
Or, just give us a call at 1-866-623-9006; if you don’t save you don’t pay.
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