Retail - Stores cut costs and ring up big savings

A well-established clothing retailer with a nationwide network of 300 stores was well-known for its excellent customer service.

However, each outlet was an autonomous profit centre with the authority to carry out its own purchasing. As a result, purchasing activity was fragmented and inefficient.

ADR Sourcing was called in and quickly negotiated national agreements for the purchase of several categories of goods and services.

This achieved substantial cost savings, organisational rationalisation and a range of improvements to quality and service from suppliers.

These included saving more than 10 per cent of spend on overheads at the company's outlets and head office.

Spend on facilities management was reduced by 17.6 per cent, while 15.8 per cent was saved on packaging and 6.5 per cent on transportation.

Altogether the savings totalled £366,000, achieved quickly and efficiently and at no risk to the client.

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