Every day the retail environment gets more competitive. In the fight to maximize margins, even small variances can translate into millions of dollars in lost profit.
It can be difficult to for a retailer to know if they are buying the same or equivalent product across multiple markets and regions; managing or harmonizing product cost is critical to realizing savings and optimize your purchasing power. It’s not unusual for costs on the same product to vary three to five percent between regions within a single retail organization.
With these insights, retailers can identify “quick hits” savings opportunities and be better prepared for supplier negotiations – – enabling them to capture 2% – 5% COGS reduction opportunities on goods for resale.
- Provide True Cost Visibility by calculating the front and back margin at an item level
- Employ Global Product Aggregation to find identical products and equivalent items through product code matching algorithms, and descriptions from the product master (brand, size, color, flavor, etc.)
- Combine Global Product Aggregation and True Cost Visibility to analyze product cost variances across markets—identifying where the same product is purchased at a different cost
With these insights, retailers can identify “quick hits” savings opportunities and be better prepared for supplier negotiations – – enabling them to get at these 3% – 5% margin opportunities.