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