Retail Industry

REDUCING THE TOTAL COSTS OF CURB APPEAL
FOR QUICK-SERVE RETAIL

A long overdue TCO reduction in curb appeal provides a convenience store chain
a leaping off point for a strategic sourcing savings initiative.

Profile

A regional name since 1923, with more than 300 locations in the US Northeast, a convenience store chain that also operates as a small grocery store. Founded in the family home, it serves its patrons by supplying fill-in grocery items and merchandise to urban residents in lieu of traditional grocery stores.

Objective

Develop and deploy a formal strategic sourcing program to enable Client to execute cost savings programs. The program was designed to implement and manage immediate sourcing projects while maintaining a vested interest in the roots of the family/business history. The program would deliver an ROI that would appeal to the buy-in of the leadership team fostering a trusted business relationship.

Challenges

Client store operators had traditionally acted independently in all aspects of indirect procurement. Store managers were responsible for sourcing and procuring everything from receipt paper to building maintenance with limited governance from the headquarters. Overtime, as the influence of corporate controls advanced, cost savings became a priority.

Impact

• Led a strategic sourcing program for multiple facility maintenance categories targeting TCO optimization.

• Conducted detailed spend analysis and opportunity assessment which provided the Client with a clear list of short and long-term savings targets.

• This expertise led to property-wide sourcing pilot projects for landscaping, snow removal and window washing, resulting in hard dollar savings of 10%+ with various adopted TCO benefits.

• Despite the transformative events, the leadership team was responsive to change as Velocity worked hard to maintain the integrity of the Client’s long standing tradition.

This initiative successfully balanced the need to be culturally sensitive and barrier breaking at the same time – not an easy task

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