Case Study:

Cash and Carry retailer improves margin by £3.7M through negotiation with top 50 brand suppliers.

Client

Leading UK food and non-food wholesaler with turnover more than £1bn. More than 30 cash and carry stores but operating in a competitive environment, difficult trading conditions and declining margins.

The project objective was to rapidly improve trading margin through a focused program to improve trading terms with top suppliers of branded products.

Approach

Fastest route to margin improvement to work with existing trading teams to improve trading terms for top suppliers

Top 50 Branded suppliers by spend identified : Beers Wines & Spirits, Soft Drinks, Dairy, Confectionary, Cleaning, Sound & Vision, Disposables Laundry & Paper

Negotiated with 56 branded suppliers to address £256m of spend.

Results

  • Dedicated team of consultants working alongside client buyers
  • Project completed in 5 months
  • Client buying team up-skilled with structured Brand Negotiation methodology
  • Delivered over £3.7M of annualised benefits to trading terms

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