Private Label Management for Grocery Retailers
By C. Chadwick on Mar 25, 2013
Alex van de Velde - Principal Consultant, Enterprise PLM Solutions EMEA
Managing product information remains important in private label strategy. Today, leading grocery retail companies are increasingly looking for broader solutions that allow them to better manage cross-functional product lifecycle business processes across their global product networks.
Product Lifecycle Management solutions give complex enterprises the comprehensive support they need to implement an integrated private label process. These solutions provide a single view of products across business processes and geographical regions. By optimizing the global product network, they allow private label retailers to achieve key business objectives such as enhanced product innovation, faster speed to market, shorter time to shelf, lower costs, improved product quality, and regulatory compliance.
Accelerate Time to Shelf
Time to shelf and time to volume determine success and failure in many markets. Product Lifecycle Management helps retailers turn time into a competitive advantage for your company by enabling your teams to collaborate across your extended supply chain to design, source, and build (outsourced) products that are right for the consumers. As a result, you can eliminate information latency, minimize errors, and accelerate both time to shelf and time to volume.
As your product network extends around the world, managing costs can become more complicated and cumbersome. It becomes even more important to streamline and formalize (cost) price management processes by giving managers the information, tools, and analytical power they need to apply their business insight and skills to (cost) price management and product sourcing activities. Product Lifecycle Management gives private label retailers the ability to manage and improve product margins, release new products at or below target costs, control margin erosion through purchased material repricing, and outsourced (manufacturing) activities without losing control of your product cost.
Improve Product Quality
As the product network expands outside the four walls of the company, it becomes more difficult to manage the design, formulation and manufacturing details that affect product quality. With private label management, retailers can put into place the processes and product improvements required to improve quality and customer satisfaction. It also allows retailers to design higher-quality products, improve product reliability, shorten complaints resolution times, and ultimately increase customer satisfaction and loyalty.
Ensure Regulatory Compliance
Without a product lifecycle management backbone, managing compliance documentation and processes across a global product network, complying with diverse regulations from various countries, and keeping documents consistent can be a tough challenge. Software solutions allow some retailers to turn regulatory compliance into a competitive edge by tightly controlling the whole process. With these solutions, retailers can establish and manage compliant, efficient, and auditable product lifecycle processes, thereby reducing business risks and ensuring adherence to regulatory requirements.
Innovation is the engine of growth for shareholder value. Product Lifecycle Management enables private label retailers to accelerate innovation without compromising creativity or supply chain flexibility. Dispersed product design teams can collaborate in real time to leverage insight, creativity, and core product designs. As a result, retailers can compress cycle times from concept through release .
Drive Strategic and Operational Decisions
Leading grocery retail companies need solutions that let them leverage embedded decision support and analytics capabilities to drive better strategic and operational decisions about their private label portfolio. Out-of-the-box decision support allows grocery retailers to make better decisions that improve product quality and enhance customer satisfaction and loyalty.
Product Lifecycle Management helps retailers to add best-selling products or drop poor-selling ones from the supply chain faster, and it helps in reduction of inventory losses. It also helps increasing product quality by minimizing errors in the design and development process and bringing compliant products to the market.