Client challenge

David Jones 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

David Jones 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 David Jones to run a program of works aimed at improving overall margin through collaborative negotiations with strategic partners (ie suppliers).

As a result, David Jones was able to achieve their targeted in-year benefits.

Fast facts

Industry

Industry

Retail and Consumer Goods

Solution

Solution

Trading Terms Optimisation

Service line

Service line

Consulting

‘The Grant Thornton team used a methodology which drove real margin outcomes for the business. They rolled up their sleeves and were on-site with our buying teams daily throughout the project.’

Jacques Du Toit, Chief Financial Officer, David Jones

Meet our team

Luke Ritchie

Luke brings more than 25 years of retail experience across a wide variety of consulting and line-management roles within large organisations and SMEs. Luke is a change agent who is well-practiced at leading and implementing large change programs, with his recent client engagements including David Jones, Super Retail Group, Baby Bunting, Target Australia and The Reject Shop.

Luke Ritchie

Luke Ritchie

  • Partner & National Head of Retail & Consumer Products

Jamie Downs

Jamie creates sustainable value for his clients that ensures their success and our ongoing retention. The GNC Group business model is built on authentic leadership; 'can-do' people; on-site 'in the trench' client partnering and an unwavering passion to exceed our clients expectations. Jamie is a trusted retail adviser with over 25 years ‘hands on’ retail experience across 4 continents, in consulting and line roles across Finance, Strategy, Operations, Supply Chain, Merchandise and Global Sourcing.

Jamie Downs

Jamie Downs

  • Partner & National Head of Management Consulting

Chris Wong

Chris is a Senior Executive with over 20 years’ experience in Corporate Finance and Strategic Consulting. He has worked with top tier professional services firms in Investment Banking and Corporate Advisory. He now works as a specialist finance and transformation consultant helping clients of all sizes and across industries to successfully execute their strategic plans.

Chris Wong

Chris Wong

  • Partner - Management Consulting

Wi Liem Chua

Wi Liem is a commercially driven retail professional with ten years’ experience in the supermarket and apparel retail industry. He has held leadership roles and worked with senior leadership teams to develop new strategy, optimise, redesign and transform key business areas across the value chain including Strategy, Buying, Planning, Supply Chain, Store Operations, Finance and People.

Wi Liem Chua

Wi Liem Chua

  • Partner - Management Consulting