Best Practices in Private Label Sourcing

Fron eqos.com: “A new benchmark study conducted by Retail Systems Research (RSR), and sponsored by Eqos, entitled, ‘PLM Squared: Product Lifecycle Management Powers Private Label Merchandise’ reports on key industry trends that have affected private label programs during the past two years. Additionally, this report identifies best practices implemented by the most successful retailers and offers recommendations for brand managers looking to drive growth by enhancing private label programs.

According to “PLM Squared”, major shifts within the last two years include:

– 77 percent of retailers studied have increased the volume and mix of private label merchandise they offer to their customers;
– The majority of retailers have decreased time to volume for new products;
– More than half have increased collaborative design with suppliers.

“When a similar benchmarking study was conducted in 2006, the single biggest business challenge faced by retailers was finding and keeping dependable partners. This year, inconsistent product quality and compliance were cited as the top concerns,’ said Paula Rosenblum, the report’s author, and managing partner for RSR. “It was somewhat surprising that the majority of retailers, including very large and highly competent players, are reporting that transit time for factory shipments is not living up to expectations.”

The study found that 70 percent of retailers have increased the volume of private label products they design collaboratively with suppliers versus 33 percent for the laggards. It also identified characteristics associated with retail ‘winners’ including:

They are able to outperform their competitors in the market without compromising gross margins;
A continued focus on decreasing lead times is causing leading retailers to have increased concerns about port capacity issues;
As a group, ‘winners’ scorecard their suppliers’ performance more frequently and on a regular basis.

“Retailer technology priorities are moving beyond spreadsheets and bidding events into business critical areas such as supplier management and product quality,” noted Rosenblum. “In fact, 95 percent of retailers surveyed affirmed the value of PLM, global sourcing, supplier management, and track & trace technologies to more effectively manage their private label programs.”

“We’re pleased to support significant initiatives such as this study, which keep a pulse on trends in the retail PLM marketplace,” said Jane Biddle, Eqos’ chief marketing officer and vice president U.S. operations. “In addition to highlighting a growing focus on quality and compliance, it also validates that retail winners are leading the way when it comes to collaborative design. Moreover, this study confirms Eqos’ leadership in delivering PLM solutions to the world’s leading retailers who are today driving best practices in private label sourcing and supplier management.”

The study can be downloaded using this link.

About Retail Systems Research
Retail Systems Research is the leading provider of objective, high quality information resources for the extended retail industry. The company follows the advancements of technology and business process innovation in this industry, and delivers insights and analysis through high-value conferences and tradeshows, publications, research, training and web-based services.

About Eqos
Eqos is a leading provider of PLM, global sourcing, and supplier management solutions for the retail supply chain. Eqos on-demand software enables retailers to work collaboratively with trading partners to enhance product innovation, improve supplier performance, accelerate time-to-market, and ensure product quality and factory compliance. By layering over existing applications, Eqos facilitates cross-enterprise, streamlined collaborative processes between retailers, sourcing offices, agents, factories, suppliers, and third party service providers. The definitive solution for multi-category retail segments, including apparel, grocery and general merchandise segments, Eqos supports millions of transactions daily for 15,000 users in 55 countries, managing more than $50 billion in inventory for the world’s largest, most recognized global retailers. Customers include Best Buy, Edcon, H-E-B, Sainsbury’s and Tesco. Founded in 1997, the company has offices in Boston, London and Hong Kong. More information can be found at www.eqos.com.” Best Practices in Private Label Sourcing

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