Braiform allows niche and mass retailers to minimise the cost and difficulty of the corporate purchasing and GNFR procurement process.

WHAT IS INDIRECT SPEND/GOODS NOT FOR RESALE (GNFR)?

Indirect spend refers to the purchase of goods and services that are not directly incorporated into the manufacture of your product. Indirect spend includes all supplies that are necessary to run your organisation such as electricity, computers, furniture, capital expenditure and so on. The majority of indirect spend is common across all businesses but for some enterprises indirect spend can form a greater proportion of expenditure, one such industry is that of garment retail.

Indirect spend in the retail world, as it is in manufacturing environments, refers to the purchase of goods and services that are not sold, but rather obtained to support the operations of your business. Retail enterprises refer to this as “Goods Not for Resale”, or GNFR.

WHY DO RETAIL ORGANISATIONS FIND GNFR PROCURMENT CHALLENGING?

Retail businesses face a number of issues while dealing with the management of their indirect spend.

Firstly, procurement teams traditionally focus on reducing their direct spend therefore do allocate the required attention to indirect spend management. Further, indirect spend management is spread across a broad spectrum of commodities, thereby increasing the supplier base and the supply chain complexities. Most importantly, retailers find indirect spend management difficult as they lack the leverage in negotiations with vendors due to low volumes. Additionally:

  • Within the supply market there are hundreds of categories, all of which require deep knowledge and expertise to procure effectively.
  • Given the relatively high turnover of GNFR it is not uncommon to see large numbers of low value transactions being carried out, frequently!
  • GNFR procurement professionals do not have any mandate over internal stakeholder budgets.
  • Managing indirect expenditure effectively requires a huge variety of skillsets, which can change from one week to the next.

HOW CAN RETAILERS OPTIMISE GOODS NOT FOR RETAIL SPEND?

A recent study by Fortune magazine found that, on average, indirect spend is a significant proportion (up to 50%) of a retailers purchases, but is often not addressed in a systematic way due to high level of fragmentation (too many categories, long tail of suppliers and different supply specifications).

Significant improvement can be made in the indirect spend portfolio by consolidating, standardizing and outsourcing indirect items of spend to reduce costs and raise service levels.

There are three key points to consider when optimising GNFR:

  1. Managing your demand
  2. Managing  your specifications
  3. Improved negotiation of unit prices

HOW CAN BRAIFORM ASSIST RETAILERS WITH GNFR SPEND?

Braiform is a global leader in the retail solutions industry, offering a comprehensive range of GNFR (Goods not for Resale) products and services, allowing niche and mass retailers to minimise the cost and difficulty of the corporate purchasing and GNFR procurement process.

           

Through investment and relationship management of the supply chain, Braiform is able to take enormous pride in its ability to achieve competitive prices from our global manufacturers and suppliers, ensuring they meet the needs of their global retail partners.

Everything Braiform does is focused on exceeding their retailer’s expectations. Their experienced and dedicated team have been in the industry collectively for over 300+ years and will provide customized and tailored solutions to support the retailer’s strategic goals.

By working as an extension of your purchasing and procurement team Braiform are able to provide tailored GNFR solutions in:

  • Pre-shipment services
  • Freight management
  • International logistics
  • Packaging optimization programs
  • Garment on hanger programs and solutions
  • Inventory management
  • Tickets and labels
  • Print management
  • In-store displays
  • Garment transit packaging options
  • PO Management initiatives and solutions
  • Milestone driven automated systems
  • Critical path management
  • Garment retail accessories
  • Innovative retail packaging designs

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