Julie Neal explains how design-to-cost techniques and other value engineering solutions can help FMCG producers to achieve a successful green transformation.
Aligning to Customer Preferences
Traditional retailers are facing momentous digital disruptions, most notably from agile online competitors who are revolutionising the traditional business landscape. Excess capacity means promotions and discounting are becoming the norm and high-street retailers need to be very dynamic with their pricing models.
With the digital revolution, fulfilment and last-mile logistics have become increasingly taxing. Managing unremitting seasonal demands and the significant returns market is stretching supply chain models. Our retail consultants understand that personalisation and speed to market is more important than ever along with an increasing focus on the customer experience and technological innovation around that both in the stores and online.
The Vendigital Difference
While the market is driving top-line trends, retailers have the opportunity to re-engineer their cost base to become a source of competitive advantage. A better understanding for the cost base gives focus to spend more in the areas that truly return, funded from the legacy costs that are not driving the future. Our data analytics and cost modelling capabilities are critical to developing and delivering actionable insights that deliver to the bottom-line. Our retail consultants partner with retailers on their entire end-to-end model, from production in emerging markets, to investing in China, through to internal operating models.
We identify the good and bad costs, helping you to invest more where returns are highest and stopping unnecessary cost leakage. By assessing profitability across the entire business portfolio, including products (costs and design), suppliers and supply chain, internal costs and stores, our retail consultants optimise key cost drivers to increase profitability and measurable improve margins.