Retailers face relentless cost pressures—inflation, supply chain disruptions, and rising labor costs are eroding margins. While direct procurement has been optimized for years, indirect procurement—10-15% of total revenue—remains an untapped source of savings. AI is transforming cost intelligence, unlocking double-digit reductions and rapid P&L impact.
What Will You Learn in This Report
- Key cost drivers in direct and indirect spend—and how AI exposes hidden inefficiencies.
- AI-powered analytics for immediate cost reduction and stronger supplier negotiations.
- Proven strategies to enhance cost control and secure better contract terms.
- Case studies from top retailers transforming their cost structures with AI.
Retailers rethinking costs today will gain a competitive edge tomorrow.
Why This Report Is Essential for Retailers
This report highlights the three key levers that are critical for cost excellence and immediate impact on the bottom line:
- Optimizing Direct Procurement – With merchandise expenses making up 60-75% of retail revenue, even small improvements in procurement strategy can unlock significant profitability gains. AI enables better supplier negotiations, cost tracking, and proactive price management.
- Boosting Process Efficiency – AI-driven automation is reshaping logistics, marketing, and IT, reducing personnel costs and cutting time-to-market for key operations. Savings of up to 16% in marketing and 12-15% in logistics are now within reach.
- Optimizing Indirect Spend for maximum savings – Indirect costs, often 10-15% of total revenue, are rarely scrutinized but hold double-digit savings potential. AI helps retailers achieve 40% cost reallocation and eliminate hidden expenses in supplier contracts.
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