indirect supply chain Archives

Optimizing your GNFR Supply Chain

Posted on March 16, 2023March 10, 2023 by Lumatrak

Optimizing your GNFR Supply Chain The goals of optimizing the Goods-Not-for-Resale (GNFR) supply chain include: Cost Savings By identifying and tracking GNFR expenses, a retail business can identify areas where cost savings can be made, such as by negotiating better prices with suppliers or standardizing purchasing processes. Inventory management By implementing an inventory management system, a retail business can track inventory levels and identify areas of overstocking or ...
Read More

Understanding the Impact of GNFR costs

Posted on March 2, 2023March 10, 2023 by Lumatrak

Understanding the Impact of GNFR costs In a retail business, understanding the impact of Goods-Not-for-Resale (GNFR) costs is crucial for maintaining profitability and ensuring long-term success. GNFR costs refer to the expenses incurred on items that a business purchases for its own use, rather than for resale to customers. These can include items such as office supplies, fixtures, and equipment. Although GNFR costs are not directly tied to revenue generation, they can still have a sign...
Read More

Supplier Evaluation

Posted on February 23, 2023February 22, 2023 by Lumatrak

Supplier Evaluation Reasons for reviewing existing Suppliers Regularly reviewing and evaluating the performance of existing suppliers is extremely important in the Goods-Not-for-Resale (GNFR) space of retail. There are several reasons why regular supplier performance reviews are important: Identifying areas for improvement Regular reviews allow a retail business to identify areas where suppliers may not be meeting expectations or where improvements can be made. This could...
Read More

Managing GNFR

Posted on February 9, 2023February 22, 2023 by Lumatrak

Managing GNFR Managing Goods-Not-for-Resale (GNFR) is important in a retail business because it can have a significant impact on both the top and bottom line. GNFR expenses refer to the costs incurred on items that a business purchases for its own use, rather than for resale to customers. These can include items such as office supplies, fixtures, and equipment. Although GNFR expenses are not directly tied to revenue generation, they can still have a significant impact on a retail business's ...
Read More

Difference between Indirect Spend and Goods-Not-for-Resale

Posted on January 25, 2023February 22, 2023 by Lumatrak

Difference between Indirect Spend and Goods-Not-for-Resale Indirect Spend Categories Indirect spend and GNFR are two terms that are often used in the context of business expenses, but they refer to slightly different things. I was introduced to the term GNFR (Goods-not-for-Resale) when my career brought me to the retail sector, after a number of years in manufacturing. I was familiar with the term indirect spend but had never heard the term GNFR. So, after more than a decade in retail ...
Read More

Onshoring Considerations

Posted on January 18, 2023February 22, 2023 by Lumatrak

Onshoring Considerations In today’s globalized economy, many companies have turned to offshoring, or outsourcing the production of goods and services to countries with lower labor and production costs. However, the current climate of multiple supply chain disruptions has led some companies to re-evaluate their reliance on foreign suppliers and consider the advantages of onshoring, or producing goods and services domestically. Shipment containers from offshoring Mitigating Risk from for...
Read More

Managing Supply Chain Risk

Posted on January 5, 2023February 22, 2023 by Lumatrak

Visual representation of a multitiered supply chain

Managing Supply Chain Risk Last month, I finished my email series discussing my supply chain digitization journey. Moving forward, I will continue sharing my experiences in managing $3.5 billion in indirect spend. Today, I will open up discussing Supply Chain Risk. Multitiered Supplier Diversity A common supply chain risk mitigation strategy is to source to multiple suppliers when a product is strategic or has significant volume. As a product, and the associated supply chain for th...
Read More

Collaborative Response

Posted on December 21, 2022February 22, 2023 by Lumatrak

Creating a Collaborative Platform Over the last several weeks, I have talked about my supply chain digitization journey while managing a multi-billion-dollar procurement organization for one of the largest retailers in the US. Over a period of several years, we developed a platform that provided continuous intelligence, advanced analytics, and outcome analysis for our supply chain. Disparate teams collaborate together Increasing collaboration between your teams Today, I want to focu...
Read More

Outcome Analysis

Posted on December 14, 2022February 22, 2023 by Lumatrak

Outcome Analysis Last week, we touched on Advanced Analytics and the need to share supply chain status information with the broader stakeholder group in a clear, useful, predictive and actionable form. We achieved this through developing stakeholder specific modules. Importance of getting my purchases onsite Material delivery to projects is critical to the success of opening stores on schedule. Delayed materials result in missing dates. In some cases, a project would be left incomp...
Read More

Advanced Analytics

Posted on December 7, 2022February 22, 2023 by Lumatrak

Advanced Analytics Last week, we discussed Continuous Intelligence. When embarking on digitizing your supply chain, a first step is to shift responsibility for communicating current order status onto the suppliers resulting in the collection of real-time, actionable information for the business. Sharing data throughout the enterprise The next step in the digitization journey is to create a way to present this information to your stakeholders. The information has to be clear, useful...
Read More