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Retailers curtail rising costs by E-sourcing private label goods

Article-Retailers curtail rising costs by E-sourcing private label goods

Rocketing costs—from gas, to coffee, beef and cotton—are forcing consumers to cut back on expenses and reach for store brands. According to a recent survey by Acosta Sales and Marketing, Jacksonville, FL, 41 percent of shoppers say that nearly half of all purchases are now private label.

Innovative retailers like Rite Aid Corp., Spartan Stores and Wegmans have found ways to pass even greater savings on to their shoppers by using e-sourcing in their procurement processes. One company providing those services is Intesource, which offers web-based e-sourcing solutions and services including reverse auctions, vendor management and contract management.


"I don't think it is an accident that those retailers who tend to be very successful in their private label business are also very successful in their overall business. Intesource provides retailers the opportunity to make sure that they are bringing their customers the best possible value on the best possible products," says Marianne Timmons, founder and CEO of Supply Chain 2020. "Intesource's services and e-sourcing platform makes it efficient for retailers to survey the landscape of what is available including new private label products and value added packaging that meets sustainability objectives. In the past, private  programs tended to be static, but Intesource makes it easy for retailers to stay on top of the latest developments and bring the best possible products and packaging to their customers at the best possible price."


In fact, using Intesource's full-service E-sourcing solutions has saved an average of 18 percent  when purchasing private-label goods for grocery, health and beauty, general merchandise and virtually every department throughout the enterprise.

Other retailers that have partnered with Intesource include Harris Teeter, Meijer, Price Chopper and Weis Markets, to name a few. Nash Finch Co., one of the largest distributors in the food retail industry, also uses the company's sourcing solutions and services.


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