Author Archives: Catherine Hunter- PRGX

How to Approach Indirect Costs in the Retail Industry: Part 4

In the fourth of the 4 part series, we will dive more deeply into the third possible approach to finding savings in indirect goods and services:  Organizational Assessment. How are indirect goods and services being purchased currently? How does your organization stand up against best practices?  Map your existing organizational procure-to-pay processes and assess them against leading companies. Which areas can you make more efficient and automated? Can you reduce errors and cut cycle time?    Key to success: Once … More

How to Approach Indirect Costs in the Retail Industry: Part 3

In the third of the 4 part series, we will dive more deeply into the second possible approach to finding savings in indirect goods and services:  Sourcing. You can also read part 1 and part 2. Can you centrally source two or three key categories–waste management or security, for example–and show significant savings? Although retailers generally cannot often mandate contract usage, sourcing and sharing those savings at an operating company level on a pro-rata basis often gains buy in and … More

How to Approach Indirect Costs in the Retail Industry: Part 2

In the second of the 4 part series, we will dive more deeply into the first possible approach to finding savings in indirect goods and services:  Spend Visibility. Although most companies realize how important spend visibility is, many companies struggle with three common issues:  1. How do I build a business case to prove we need visibility? 2. I have an ERP system, can’t I use that? 3. I have a spend visibility provider, but I am not sure if it is giving … More

How to Approach Indirect Sourcing in the Retail Industry: Part I

In Greek mythology, Cerberus is the three-headed dog guarding the gates of Hades. For many of today’s retailers, approaching the topic of indirect or non-merchandise spend is like fighting a three-headed dog. It stumps many retailers because purchases of indirect goods and services are usually not controlled by a center-led procurement organization. Even though indirect goods and services are part of division or store budgets, many retailers have little or no visibility across buying organizations and into spending habits.  Retailers … More

How much risk is in your supply chain?

Do you know the risk quotient of your active suppliers?  Traditional SRM solutions do not integrate common indicators associated with risk; yet, supplier-related risks exist at every point in your supply chain. Begin to think SRRM—Supplier Risk and Relationship Management.  Beyond the traditional financial, quality, and performance indicators, there are other critical risks that should be actively monitored. These can include brand and regulation risks, fraud, natural disaster, and political and country risks. Break risks into 6 key dimensions:  1) … More

SRM Reaches Prime Time

Supplier Relationship Management (SRM) has been around for a long, long time. It is an ancient principle of tracking suppliers’ self-reported metrics of on- time delivery and quality components. It is costly to implement, returns are not clearly defined and cost savings remain at the top of a CPO’s list of goals. But times change in the most unexpected ways. Consumers are now looking for new products and services practically on demand. Businesses want to stay ahead of the development … More