Every retailer has tried clamping down on indirect purchasing at some point, and most have redoubled their efforts in the tough trading environment of the past few years.
But despite this heightened scrutiny, we consistently find indirect purchasing to be a reliable source of additional funding for cost reductions or investments in a stronger customer proposition. This is because most attempts to reduce the cost of goods not for resale (GNFR) have two weaknesses: too narrow a scope, and too little creativity in approach.
In this article we will take a closer look at the full breadth of GNFR categories, across both CAPEX and OPEX, and discusses three different approaches to managing cost: buy cheaper, spend better, and spend less.
