The retail market is at a critical stage – balancing precariously between limited (or no) growth, and decline. The Amazon acquisition of Whole Foods is already shaking up the grocery segment, and the transformation of the industry will inevitably continue to include highly integrated on line, in store, and mobile user experiences, with Amazon leading the way.
Traditional retailers have work to do in order to compete in this new environment. According to the 2016 Foresee Experience Index (US Retail Report):
- In-store Customer Experience(CX) scores across the industry have remained stagnant for three years running
- Leading retailers’ mobile CX is typically their highest-rated channel
- Improving the “omnichannel” environment is a requirement for winning customers
So, retailers can’t stop focusing on the store to concentrate solely on the digital experience. They must manage on line, in store, and mobile experiences congruently. And that costs money…Lots of it!
An optimized print and marketing communications supply chain can speed time to market, improve brand consistency and fund innovation and technology projects within existing budgets. With the right approach, these materials can be purchased at highly competitive rates. Retailers that don’t have the tools to leverage this may be paying a 20% – 40% premium over the market price for the materials that they use in the retail store environment.
Consider these statistics:
- McKinsey & Company, in its April 2017 report “Turning Indirect Sourcing into a Multimillion-Dollar Profit Center,” noted that indirect spend is typically around 10 percent of revenues for retail and other consumer-oriented businesses, and marketing expenditures usually fall in the top 3-5 categories.
- The print, marketing communications and branded merchandise categories represent one of the largest groupings of indirect spend in consumer-oriented businesses, yet less than one in five organizations are fully optimized.
- And according to The CMO Club,”56 percent of Marketing executives have never assessed their marketing operations [and supply chain processes].”
How to Find Savings
The most important step to identifying where savings might occur is a robust optimization assessment of the current state environment. By asking questions such as: How many suppliers do we have? Is there an opportunity to leverage our scale? What resources do we have on staff to manage the process? Is there a way to streamline? Are our suppliers using the most up to date production and distribution methods? Is there a better way?
When evaluating your print and marketing communications supply chain, answering these questions can uncover a surprising amount of savings opportunity – budget dollars that can be used to fund the digital transformation and improve the customer experience.
At SupplyLogic, we believe that an optimization assessment of your current state environment is the first step to unlocking value at the enterprise level. Serving as a third party management company providing specialized managed services within the print, marketing communications and branded merchandise categories for leading U.S. retail brands, we understand how to find cost-savings seemingly hidden in plain sight, while improving brand continuity and reducing business risk.
To learn more about the five key areas of an assessment, visit www.supplylogic.com or call us at 1-877-767-5644.Back…