APPROACH
Identified right subcategory based on private label penetration, price fluctuations etc.
Analyzed data availability & coverage at SKU level
Found the desired private label brand comparable for each national brand
Analyzed price fluctuations and BoM variations between national and private brands to identify the root cause
Created interactive dashboards using standardized data for better decision making
Extended the process to all feasible product categories
KEY BENEFITS
- The price negotiation process was automated and made it feasible to run the analysis frequently to validate the raw material costs with higher visibility and transparency into vendor prices
- The dashboard helped understand the price fluctuations between national brands and private brands to make an informed decision
- AI driven product mapping 3rd party website scrapping helped in improving the coverage of all national brand products for better comparison
RESULTS
- The client was able to negotiate better prices for the raw material and re-negotiate the price when the raw material costs fluctuated, this ended up in 3% average savings for procurement