Supply Chain Management

May 31st, 2017

Reducing Costs in a Convenience Store World


Today’s post is written by Robert Rice, Account Manager at SafeSourcing Inc.

There is mounting pressure that distributors need to better align themselves with convenience store retailers to trim costs from the industry’s distribution network.

Cutting costs remains a challenge for convenience store chains big and small. Dealing with distributors and local foodservice providers, c-store’s are learning ways to grow more efficiently without sacrifice of goods and services. Some ideas they have implemented include maximizing product turns, reducing out-of-stocks, and removing slow-moving items to make room for better sellers.

It is very important to embrace category management and recognizing the potential of the store by stocking high-margin impulse items like candy and snacks in the highest traveled aisles.

Owners also need to make sure they have the best selling items. The top 50 SKUs, which only represent about six-tenths of 1% of all SKUs in the convenience store, drive 32% of the business. The key is to have a very good focus on the assortment of these core items.

Not Just Cost

Many c-store owners tend to focus on cost rather than all the elements that go into their purchases. This could include the terms they have set up, order quantities, delivery decisions and a host of support services. One of the most successful ways to control costs is consolidating the number of vendors coming through your store, something 7-Eleven has perfected. They realized they had vendors with over-lapping items. By consolidating them, they reduced costs through volume purchasing with less vendors.

The challenges for convenience store chains and owners will continue but taking the time to evaluate your supply chain, the vendors you do business with and what items sell and which don’t could lead to huge savings.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.



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