Executive Briefings

Retailers, Grocers, Restaurants 'Miss Major Opportunities' to Cut Costs and Improve the Bottom Line

Is ignorance bliss when it comes to sourcing? A recent poll of buyers in the retail, grocery and restaurant chain industries found that 75 percent of those not using e-sourcing methods are confident that they're getting the best value from their suppliers. But they're wrong, according to a report from Intesource. A suppliers' true rock-bottom price is almost always far lower than a buyer suspects. And it's even more likely another qualified source may be hungrier for new business. Buyers just need to know how to shift the tables.

Study after study shows that businesses almost always experience double-digit savings with a move to e-sourcing.  Aberdeen reports that companies using advanced e-sourcing techniques save an average of 16 percent yearly. Despite these numbers, less than half of retail, grocery and restaurant chain organizations are using e-sourcing today, according to an August 2012 study.

Healthy supplier relationships are an essential aspect of the sourcing equation, but they're only one factor. Without access to a number of reputable vendors competing for your business, how do you really know that you're getting the best value?  As margins tighten and consumers watch their spending, it's a question that chains must answer.

Buyer confidence that they're getting the best possible price on goods and services is alarmingly high for companies that lack e-sourcing experience. Why? Before adopting e-sourcing, they simply have never experienced the dramatic savings opportunities ready for the taking in nearly every category - even from incumbent suppliers.

Despite market data that shows they're saving big money over their peers and receiving exceptional value, e-sourcing users are still somewhat skeptics - always believing that there's a better offer on the table. Meanwhile, those who aren't using e-sourcing are content with the value they're getting from suppliers - which results in major money left on the table. This mindset, unfortunately, poisons many retailers, and hurts overall performance.

The full report can be downloaded, click here.

Source: Intesource


Keywords: retail supply chain, sourcing solutions, e-commerce, online sourcing

Study after study shows that businesses almost always experience double-digit savings with a move to e-sourcing.  Aberdeen reports that companies using advanced e-sourcing techniques save an average of 16 percent yearly. Despite these numbers, less than half of retail, grocery and restaurant chain organizations are using e-sourcing today, according to an August 2012 study.

Healthy supplier relationships are an essential aspect of the sourcing equation, but they're only one factor. Without access to a number of reputable vendors competing for your business, how do you really know that you're getting the best value?  As margins tighten and consumers watch their spending, it's a question that chains must answer.

Buyer confidence that they're getting the best possible price on goods and services is alarmingly high for companies that lack e-sourcing experience. Why? Before adopting e-sourcing, they simply have never experienced the dramatic savings opportunities ready for the taking in nearly every category - even from incumbent suppliers.

Despite market data that shows they're saving big money over their peers and receiving exceptional value, e-sourcing users are still somewhat skeptics - always believing that there's a better offer on the table. Meanwhile, those who aren't using e-sourcing are content with the value they're getting from suppliers - which results in major money left on the table. This mindset, unfortunately, poisons many retailers, and hurts overall performance.

The full report can be downloaded, click here.

Source: Intesource


Keywords: retail supply chain, sourcing solutions, e-commerce, online sourcing