Retail in Transition: Video Insights on Cost Excellence in Retail

From Margin Pressure to Cost Excellence

Retailers are under sustained pressure – from volatile input costs and shifting trade dynamics to increasingly price-sensitive customers. But what we see across projects is clear: the real issue is often not the level of costs, but the lack of control over them.

In particular, indirect spend remains a blind spot in many retail organizations. Fragmented data, decentralized purchasing, and limited transparency lead to inefficiencies that directly impact margins – often without being fully visible or actively managed.

At Inverto, we focus on turning this complexity into measurable impact. By creating transparency across spend categories, applying AI-driven analytics, and embedding procurement into the core steering model, retailers can unlock double-digit savings and build resilient cost structures.

This video series distills these practical insights into three short, executive-level perspectives. Simone Hilbring (Managing Director at Inverto, a BCG company) explains how to move from hidden cost leakage to AI-enabled cost control – and ultimately to structural cost leadership.

What challenges do retailers face in managing indirect spend?

Key Takeaways

Indirect procurement accounts for 10–15% of retail revenue but often lacks transparency
Fragmented data and decentralized purchasing create structural inefficiencies
Up to 40% of spend can be reclassified once full visibility is established
Transparency is the foundation for sustainable margin improvement

How can AI and data transparency unlock savings in indirect procurement?

Key Takeaways

AI consolidates fragmented spend data into a single, transparent view
Data-driven cost models enable fact-based negotiations and measurable savings
Category-specific insights unlock targeted optimization potential
Double-digit savings can be realized within the first year

How can retailers turn cost optimization into a long-term advantage?

Key Takeaways

Sustainable cost advantage requires continuous transparency and monitoring
AI enables real-time cost control across indirect spend categories
Cross-functional accountability is key to lasting impact
Cost excellence creates financial headroom for innovation and growth

Retail in transition

How AI can pave the way to cost savings

Retailers face rising cost pressures, yet inefficiencies in procurement and operations continue to erode margins. While direct procurement has been optimized, indirect spend, often 10-15% of total revenue, remains a hidden opportunity for savings. AI-powered cost intelligence is transforming procurement, enabling retailers to achieve double-digit savings, optimize supplier agreements, and protect margins.

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