Case Study:

Pharmacy chain develops programme of key supplier management to drive margin improvement.

Client

British pharmacy company with over 1,500 pharmacies, 17,000 staff and dispensing over 150 million prescriptions annually

The project objective was to identify ways to improve margin from a range of branded products supplied direct-to-store.

Approach

Top 23 suppliers identified, accounting for 70% of total direct-to-store spend

Review of contract documentation, internal data, key performance indicators and category analysis for each supplier

Creation of supplier dashboard for each supplier with the 17 levers of retail margin improvement

Category benchmarking to identify margin improvement potential.

Results

  • Supplier dashboard to visualise key performance indicators for margin management
  • Key Supplier Management strategy for each of the Top 23 suppliers
  • Negotiation strategy for each supplier to improve terms and margin
  • Introduction of Key Supplier Management process based on 17 levers of retail margin improvement

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