supply chain risk management Archives

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...
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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...
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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 ...
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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...
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Managing Supply Chain Pinch Points

Posted on January 12, 2023February 22, 2023 by Lumatrak

Texas sign shown frozen during a winter storm

Pinch Points Affecting Supply Chains Last week, I discussed some of my more general risk mitigation strategies. This week, I’m going to focus on a specific example of a pinch point within the supply chain. A pinch point is a product that has limited sourcing options. Winter storms causing supply disruptions In 2021 and 2022, we experienced supply disruptions within our refrigerated systems category despite being sourced with multiple suppliers. In February 2021, the south-central regio...
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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...
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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...
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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...
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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...
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Introducing Lumatrak’s Newest Team Member

Posted on November 16, 2022February 22, 2023 by Lumatrak

Introducing Lumatrak's Newest Team Member Hal Capshaw recently joined Lumatrak after spending over a decade leading the procurement team supporting the real estate division of one of the largest retailers in the country. Hal was responsible for $3 billion in spend across operational supplies, merchandise fixtures, equipment and systems, building materials and services. Supply Chain Challenges Hal Faced Hal's team constantly faced challenges without clear visibility to their supplie...
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