Through their frequent work with wide-reaching retailers and consumer facing businesses, LogicSource has found that store signage programs are often bloated, inefficient spending categories undertaken without a purchasing strategy in place. Without a proper approach, businesses fall into an easy trap, buying with no set pricing or set suppliers, falling into a bid-and-buy cycle for all their signage needs. The rates these businesses receive are at the mercy of supplier production schedules, making costs unpredictable and driving prices higher than they need to be.
The LogicSource team conducted an in-depth analysis of the retailer's store-signage program spanning its hundreds of U.S. locations and uncovered significant pricing and rate inefficiencies, redundant purchasing and mismanaged procurement schedules. The retailer had become reliant on a long-time incumbent supplier that had no incentive to innovate or look for cost-takeout opportunities.
"By not setting expectations and never questioning the status quo, the retailer lost touch with current pricing and market rates in ways that were detrimental to the bottom line, and ultimately to the business at large," noted Susan Cooke, signage expert within the LogicSource Center of Excellence.
Cooke and her team were able to establish an accurate signage spend baseline and provide a full and clear assessment of the signage program, something that had previously eluded the retailer. Now rather than accepting the pricing provided by suppliers, the global retailer went to market dictating the terms of their signage needs.
By leveraging LogicSource's $5.6 billion of cross-portfolio spend, real-time market intelligence and strategic supplier relationships, Cooke and her team secured bids from five suppliers offering the retailer savings ranging from 18-43% on the overall signage program.
"The retailer's final decision was one that worked best for their business, securing 39% savings while being able to work with a supplier located in the same city as their company headquarters," stated David Pennino, LogicSource CEO. "The combination of pricing, location and overall capabilities made the decision an easy one for our client and another success story for LogicSource."
LogicSource's commitment extends well beyond a client's initial savings.
"As a wire-to-wire partner, our goal is to ensure that purchasing at the right time, with the right vendors, and at the right rates becomes second nature for our clients," Pennino said.
About LogicSource:
LogicSource was purpose-built to drive profit improvement for their clients through better buying. LogicSource focuses exclusively on the sourcing and procurement of goods not-for-resale, which typically represents 20% of a company's revenue and the greatest area of spending inefficiency. Tested time and again in the marketplace, their proven engagement model builds profitable partnerships that achieve 4-15x ROI. Learn more about the LogicSource® difference at www.logicsource.com.
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