At-A-Glance: Improving Cost Visibility with Margin Analysis Across Global Retail Operations
In today’s global retail landscape, grocery operations face particularly complex cost visibility challenges due to vast SKU counts and varied supplier funding mechanisms across markets. The client chose PRGX Margin Insight™ for its advanced True Net Cost (TNC) analysis capabilities to unlock hidden value opportunities and standardize their approach to supplier income across multiple markets.
$1.5B
Across 38K SKUs
52%
Amount of Spend Matched (SKUs/Markets)
$150M+
COGS Savings Opportunity
Challenge: Matching Supplier Income to SKUs for Detailed Visibility
The global grocery retailer faced significant hurdles in mapping supplier income to their vast product portfolio. Their visibility challenges stemmed from having no clear view of SKU-level true costs after supplier income, alongside inconsistent pricing for identical SKUs across different markets. The complexity was magnified by a product identification system where single products could have multiple barcodes (UPC/EAN) and one barcode could have multiple product numbers, creating a fragmented view of supplier funding across markets.
Solution: Unlocking Value Through GPA and TNC Margin Analysis
PRGX implemented a strategic 5-step approach that leveraged both Global Product Aggregation (GPA) and TNC analysis to transform raw data into actionable insights using Margin Insight.
Our methodology, with key steps running in parallel, began with project initiation and data extraction. The critical GPA phase then cleansed and matched products across markets, creating a unified view of the product portfolio. This foundation enabled precise TNC calculations by overlaying supplier funding data, revealing significant cost variances.
The result was a comprehensive solution delivering:
- Global product matching across markets, uncovering equivalent items
- Precise TNC calculations at the product level
- Complete vendor funding visibility across markets
- Identification of $150M in COGS savings opportunities
Transform Your Cost Visibility with PRGX Margin Insight
Ready to unlock hidden savings in your global retail operations? PRGX helps organizations achieve competitive advantage through granular cost analysis and actionable insights. PRGX Margin Insight solution enables enhanced competitive positioning through data-driven decision making across markets. Chat with our experts today or watch a demo to discover how PRGX can help you identify and capture significant COGS savings opportunities across your global operations.
How Much Can You Recover?
Take a look at our services and solutions, backed by serious analytics.
