Retail

Private labels are essential for boosting margins and fostering customer loyalty, but managing them effectively demands a delicate balance between cost efficiency and quality. We tackle this challenge by standardizing product specifications, strengthening supplier relationships, and optimizing sourcing processes. Leveraging tools like online auctions ensures we secure the best value while maintaining the highest standards. 

To further enhance cost-effectiveness and supply chain resilience, we leverage our office in Shanghai to support Far East sourcing where appropriate. This local presence enables us to work closely with suppliers, ensuring compliance with quality requirements and delivering competitive pricing. 

This structured approach ensures private-label products consistently meet customer expectations, drive profitability, and position brands for long-term success in a competitive marketplace. 

Case Study: Boosting Margins by 7.6% Through Private Label Optimization

For a leading European food retailer, we implemented a structured approach to maximize Private Label potential by balancing cost efficiency with quality standards. This included streamlining supplier negotiations, conducting cost breakdowns, and standardizing product specifications.

 

Key initiatives included qualifying new suppliers, leveraging data-driven tendering processes, and conducting workshops to optimize top SKUs. These efforts led to a 7.6% improvement in margins, strengthened supplier partnerships, and ensured high product quality.

 

This comprehensive strategy positioned the client’s Private Label products for long-term profitability and competitiveness in a dynamic market.

Strong brand negotiations are essential for securing better terms and strengthening supplier partnerships, but achieving success requires thorough preparation and strategic execution. We equip Category Management teams with a proven toolkit that includes analysis of the category dynamics and individual supplier performance, clear margin optimization techniques, and tailored negotiation strategies.

By providing targeted training and on-the-job support, we ensure teams are confident and well-prepared to achieve the best possible outcomes. This approach not only improves immediate results but also builds internal capabilities for lasting value creation.

Case Study: Driving 2.3% Margin Growth Through Strategic Negotiations

For a major retail department store group in Europe, we transformed their brand negotiation processes to improve transparency, efficiency, and outcomes. By introducing a client-specific toolkit, including a contribution margin calculation tool, supplier benchmarking, and negotiation guidelines, we enabled the client to negotiate effectively with their top supply partners.

 

This structured approach resulted in a 2.3% improvement in contribution margins, equivalent to €3.6 million annually. Alongside immediate results, we equipped the procurement team with enhanced analytical tools and a strategic framework for sustained success in future negotiations.