Case Study: Leverage Strategic Relationships

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Client Description

Regional Food Retailer with sub-optimized supplier relations.

Background

Retailer recognized that the relationship with key suppliers had eroded to that point where critical sales and profit targets were in jeopardy. The retailer created a plan to engage suppliers in developing business building merchandising solutions.

Objective

Develop new merchandising solutions that will drive sales and identify supply chain improvements that will lower costs and improve product availability and in-store execution excellence.

TPG Approach

  • Internal current state assessment of current processes and guidelines targeting ineffective practices.
  • Redesign of key activities enabling retailer to fully leverage the capabilities of the suppliers.
  • Orchestrated communication of new guidelines with supplier community coupled with targeted initiatives with selected supplier partners to establish benchmark performance standards.
  • Roadmap development prioritizing opportunities and category core results in availability, reduced logistic costs and gross margin improvements.

Impact/Results

  • Improved speed to shelf and more productive new product launches.
  • More effective use of available trade investment.
  • Innovative supply chain practices that lower the cost of goods.
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