In the current competitive retail environment, Australian retailers are increasingly turning to specialist industry suppliers for the best advice and latest technologies to help drive business success. By engaging an expert, retailers can focus on their priorities without being distracted by their many other day-to-day demands according to August Retail World’s in-store services business review.
Brad Rossiter, GM Field Marketing from Retail Safari said it’s extremely important for grocery retailers to get their sales and marketing right and, for many, that means looking outside their business for expert advice. “Outsourcing is no longer a ‘nice to have’, it’s an imperative,” he said. “Against a backdrop of increased competition and the need for competitive advantage, outsourcing has become a critical business strategy in the unrelenting pursuit of improved performance and profits – through reduced costs, specialised service delivery, improved efficiencies and increased sales.”
Key outsourcing benefits include:
• Improved cost efficiencies
• Economies of scale
• Increased flexibility
• Improved financial ratios
• Better management of results
• Increased coverage
• Retail expertise
• Avoiding capital outlay
• Improved accountability
While some of these benefits are obvious, few grocery retailers are currently outsourcing their sales and marketing operations. “One of Australia’s largest supermarkets is trialling an outsourced model for merchandising of their own products and those of their vendors, Mr Rossiter said, “but currently it is mostly brands that take advantage of outsourcing services rather than the retailers. However, there is a growing opportunity for smaller retailers to take advantage of some of the efficiencies around cost and expertise that outsourcing provides.”
Additionally, the article points out that technology also has an important role to play in driving better sales and marketing results for retailers, with a broad range of new systems and devices providing deeper customer insights and minimising wastage. With grocery suppliers and retailers working hand-in-hand on a daily basis, efficiency in how they interact is absolutely paramount and this is one example where technology is having an impact. Read more at The best for your business
