Increasing profits trough strategic sourcing
By FashionUnited
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Further more, according to KSA retailers can increase their profit through changes in product development, and the way they work with suppliers. Through an authoritative strategic sourcing programme centred on negotiating more favourable agreements and improving collaboration with suppliers retailers will benefit.
“Better integration of customer insights on the one hand and delegation of more added value activity to suppliers on the other is part of the retailers’ formula to reduce costs,” adds Traish. “Many consumer goods companies could learn a lesson or two from those fashion firms that have built a supply chain that can develop product closer to demand and have upped the stakes in delivering ‘newness’ because they are benefitting from improved margins.”
KSA is further researching strategic sourcing, and will publish its latest findings in its annual global sourcing guide. Together with its clients, KSA makes strategic, operational and information technology decisions to create tangible and meaningful results.
Image: Kurt Salmon Associates