GFR & GNFR Cost Reduction

GFR & GNFR Cost Reduction

Working with a leading UK Wine and Spirits retailer to deliver a complex cost reduction programme.

To discuss how we can help you with similar challenges please contact Jeremy Smith.

The Problem

  • The retailer had an annual budget deficit of around £1m and was introducing budget challenges for the upcoming financial year.
  • 4C was chosen to conduct a full cost review of the Goods Not For Resale (GNFR) and Goods For Resale (GFR) spend to identify the areas of opportunities.

The Solution

  • The 4C team conducted an opportunity diagnostic, including a deep dive review of budgets and contracts versus our benchmarks and held validation workshops with stakeholders, leading to the identification of £2.1m in savings against a GNFR spend of £19m.
  • In GNFR we implemented a multi-category strategy approach across all business units, with market reviews, RFxs, eAuctions and supplier negotiations.
  • In GFR we introduced a supplier partnership programme across non-core ranges, generating efficiency enhancements and improved ways of working.

The Impact

  • The initial cost saving targets were exceeded significantly by 62%, resulting in £3.4m versus £2.1m.
  • The cost reduction programme increased control across the organisation by implementing preferred supplier lists and framework agreements, leading to improved supply management and better visibility to address any environmental or ethical issues within the supply chain.
  • The client achieved long-term efficiency savings by consolidating the supplier base and building improved internal credibility for procurement.