A leading international chain of stores (a franchise organisation with a rapidly changing seasonal range) and a good consumer reputation, was unaware of large sums of money lying neglected with suppliers. Recentes helped unearth this money while also implementing structural changes.
Case
Recentes case

Better registration was proven to give significant results

A non-food retailer with 97% name awareness
An international chain of stores, with its head offices in central Netherlands and a number of distribution centres, has a central purchasing department. Moreover, individual stores and also the distribution centres make independent purchases. Due to this spread of purchasing and the long history of the organisation, purchasing contracts are not strictly controlled. The quality of the contracts varies considerably, and compliance with contractual agreements often plays second fiddle to the day-to-day commercial affairs.

 

Recentes came into contact with this organisation and proposed an audit of the conditions of recent years. The assessment would determine whether all purchasing conditions revenue had been received and whether suppliers had accounted for the full (decentralised) purchasing value.

 

Much more than expected

While the expectations were only cautiously positive beforehand, large sums of money were shown to be lying neglected with suppliers. Much more than expected. Due to buyers not always feeling responsible and not having the correct information, suppliers were inadequately obliged to account for purchasing value. One supplier, with whom business had been done for many years without a contract, even sent a quarterly calculation of their bonus. Without ever having received an invoice……. There was no official agreement after all.

 

An extremely practical method

In order to reconcile the purchasing value of all channels, Recentes introduced an extremely simple and practical method. It was applied for the previous years, but also for any future revenue from that point on. The IT systems could not be linked without major investments, and an Excel template was therefore used to gather and bundle the data. This allowed the purchasing data from dozens of individual systems and accounts to be immediately combined, giving a comprehensive picture per supplier.

 

Profitable for many companies

In the end, suppliers paid out a seven digit figure for the past years. A further result was the structural annual increase of revenue, which was a positive factor for the future. Due to such revenue being passed on to the participants in this franchise format, all the independent entrepreneurs profited from this project.

 

Besides the direct financial benefits, contracts and conditions were rendered more watertight and uniform. This prevents unnecessary disputes at the time of settlement.

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Ontwerp, vormgeving en technische realisatie
Studio nenontwerp  -  www.nenontwerp.nl
Contact
Martin van Wijngaarden
studio@nenontwerp.nl
M 06 1665 0665