Industry
Health & Beauty Retail
Summary
Mediscape Global provided consultancy support to a leading national health and beauty retail chain on its procurement strategy and implementation approach, resulting in a £3m benefits realisation, strengthened supplier relationships and establishment of a long-term procurement model.
The Challenge
Our client, a major health and beauty retailer faced mounting financial challenges. They needed a strategic procurement solution that could deliver significant cost savings without compromising quality or supplier relationships.
Their goal was to create a sustainable procurement framework that not only reduced costs but also generated added value, resilience, and a platform for growth in an evolving market.
Our Approach
Mediscape Global applied a multi-faceted, consultative approach that combined data analysis, strategic insights, and industry expertise to address the client’s unique challenges:
In-Depth Analysis: Conducted a holistic review of the client’s buying function and supplier terms, using data analytics to identify patterns and inefficiencies that were driving up costs. This analysis offered actionable insights and provided a strong foundation for a transformative procurement strategy.
Strategy Development: Crafted a multi-phase procurement strategy that encompassed:
People and Capability Enhancement: Recommended an optimised organisational structure and upskilling plan for the procurement team to ensure they had the competencies needed for sustained success.
Advanced Data Analytics and Dashboarding: Established a performance dashboard to provide real-time visibility into key procurement metrics, allowing for more proactive management and continuous improvement.
Supplier Relationship Management: Streamlined product categories and consolidated suppliers to enhance negotiation leverage, focusing on quality, value, and long-term partnerships.
Collaborative Execution: With key internal stakeholders on board, we translated the strategy into a detailed delivery roadmap. Mediscape Global consultants facilitated supplier negotiations, employing strategic positioning to secure favourable terms that balanced cost savings with value-added benefits, setting the stage for ongoing procurement success.
The Results
Expanded Value Beyond Cost Reduction: Negotiated value-adding benefits with suppliers that went beyond cost reduction, such as marketing support, staff training resources, extended payment terms, and opportunities for own-label and new category development, opening up new revenue streams.
Substantial Cost Savings: Achieved a £3 million cost reduction to be realised over a two-year period, alleviating financial pressure while enabling reinvestment in growth.
Long-Term Procurement Model: Established a sustainable model for procurement excellence, including a continuous improvement framework and a stronger foundation for data-driven decision-making.
Call to Action
Contact Mediscape Global today to learn how our expertise in procurement strategy and implementation can drive cost savings, enhance supplier relationships, and establish a foundation for sustainable growth in your organisation.
