Intelligent sourcing is the key to retail procurement success

Technology has transformed the retail landscape, and retail procurement supply chains have become more complex.…...

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Technology has transformed the retail landscape, and retail procurement supply chains have become more complex.

However, retailers can overcome the challenges of retail procurement by collaborating with suppliers and adopting intelligent sourcing strategies.

Take a closer look at the suppliers

Procurement professionals should take a closer look at their suppliers to see if it is possible to consolidate them to minimise lead time.

Also, finding suppliers that are located close to the warehouse or retail store can help reduce delivery time and shipping costs.

You can open up a line of communication with suppliers to find out if they will offer more competitive pricing if you increase the volumes of the orders.

If you have the ability to store your inventory and are certain that you will be able to dispose of the products quickly, then it makes sense to order higher volumes.

Do away with legacy systems

Today, retailers are investing in technology to ensure that consumers enjoy a seamless online shopping experience.

Legacy systems are unable to provide this experience – hence, retail procurement should focus on improving technology, especially when it comes to data security.

Procurement professionals should take note of legacy systems that are incompatible with state-of-the-art technologies and look for ways to upgrade them so that the end customers enjoy an exceptional buying experience.

Make use of big data

Data is the key to optimising retail procurement and the entire supply chain.

Analysing data allows procurement professionals to handle market volatility and competition.

The analysis also allows procurement to determine which products are selling and which ones are not.

Based on this information, they can streamline the procurement of products that are popular in the marketplace and other channels.

You can collaborate with suppliers who can supply the popular products at a competitive price.

These are some of the ways that procurement professionals can adopt intelligent retail procurement strategies to benefit the organisation and the end-users.

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