Minimising operational run costs is critical to maitaining margins; particularly in low-cost retail businesses. However, specialist category experience is required to improve upon many of the larger deals. The Transformation Director of the UK Value Retailer asked Tessiant to review the opportunities for 3rd party cost savings across the business.

Following this review, we deployed an experienced retail procurement team to deliver the identified savings. We also helped to improve contract terms across all categories including supply chain, marketing, IT, utilities and facilities. Working alongside the internal budget owners, the team focused on the cost base throughout the whole organisation.

The Tessiant team helped to renegotiate deals saving the client around 7% of the gross GNFR spend, which equated to a multi-million pound yearly benefit. This fundamentally changed the cost base, particularly in waste, IT support, shop fit-out, maintenance and marketing. In addition to the annual savings, we supported larger projects (with over £2M saved) and helped embed efficient and effective procurement practices.