challenging Turkish towel supplier for a large dutch multinational retailer

  • business challenge

    A Turkish towel manufacturer was pressuring our retail client for a 10% price increase across all cotton towels. The supplier was rightfully arguing there was a +34% increase of cotton prices.

  • our approach

    4SCAN took into consideration: commodity prices, labour rates, inflation, currency impact, volumes, margin analysis and other cost drivers.

  • our findings

    The supplier was omitting an appreciating Turkish Lira against USD (our client’s payment currency). The supplier was gaining up to 27% on FX which more than compensated for the loss driven by the increase in cotton prices.

value delivered

4SCAN simplified the buyer’s job to research all cost drivers including currency, inflation and raw material trends. The retailer challenged the supplier with fact-based analysis, triggering discussions to find cost reduction opportunities.

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