A leading Australian retailer had not formally reviewed its supplier trading terms from a corporate end-to-end view for several years and their trading income was not growing in line with sales.
An initial ‘discovery’ phase quantified a significant opportunity across the business.
Grant Thornton was engaged to undertake a comprehensive planning and execution engagement to deliver the identified supplier benefits.
At the same time, the client was making significant changes to its supply chain operations and, therefore, these two activities were to be closely aligned.
The solution
The leading Australian retailer required additional capacity to support them in the quantification, planning and execution of a structured supplier trading terms negotiation program.
The team at Grant Thornton drove the following activities and tasks:
- establishing program governance
- opportunity methodology and quantification of opportunity by supplier and trading terms
- supplier engagement strategy and segmentation
- preparation of supplier negotiation materials – the ‘playbook’ for each category
benefits tracking and capture.
The outcome
A key outcome of this engagement was to assist the leading retailer to run a program of works aimed at improving overall margin through collaborative negotiations with strategic partners (ie suppliers).
As a result, the leading Australian retailer was able to achieve their targeted in-year benefits.
Fast facts
Industry
Retail and Consumer Goods
Solution
Trading Terms Optimisation
Service line
Consulting
