As leading retail & consumer products companies continue to navigate through the recent retail doldrums, it comes as no surprise that successfully managing margins is critical. Margins are being choked from growing input costs such as material, labor, energy, and other production costs. Combine this with consolidation in the industry (which makes creating operational efficiencies much more challenging) along with private-label competition displacing national branded products and the big boys have a challenge. Where do they pass these costs along?
In this environment, and in the recent top 100 retailer engagements we've been involved in, we’re repeatedly seeing companies strive to formulate and execute cost controlling initiatives across the entire organization. And in our business, these efforts focus on the organizational groups that span concept to compliance (raw materials to finished product). The motivation to reduce pricing pressure centers on reformulations, product innovation, changing product mix, supply agreements and distribution channels. Proper process planning and the addition of effective cost reduction solutions is helping companies achieve competitive advantage and maintain profitable growth.
Does this come as no surprise? Probably not. Are we preaching to the choir? In most cases, you bet. Do we have a solution? Absolutely.
From concept to compliance, TEXbase delivers a unique set of web-based, hosted applications that helps top retailers manage margins by reducing cycle times and helps drive additional revenue by accelerating speed to market. Contact us now to understand how.