Strategic Sourcing: Navigating Retail Challenges with Scott Benedict

Scott Benedict offers a fresh perspective on the true value beyond mere cost in product sourcing. 

Learn why the long-term health of the retail industry relies on strategic thinking that goes beyond traditional price considerations. Empty shelves and stockouts are not just a headache; they're damaging to profitability and customer satisfaction. 

Scott provides actionable insights into how businesses can adapt their sourcing strategies to stay competitive and meet consumer demands. 

This week's Scott's Thoughts: a thought-provoking look at the evolving retail landscape and the critical importance of making informed sourcing decisions.

Transcript

Speaker 1: 0:03

Scott Benedict, ceo, retailer and Product Sourcing. Hello everyone, I'm Scott Benedict. You all have been reminded a lot recently about the cautionary tale provided to retailers sell just because that source provided that product at a lower cost than anyone else. You see, in retailing, paying less for a product that you can't get for your customers on a consistent and reliable basis isn't really a better value. Customers on a consistent and reliable basis isn't really a better value. Now fast forward to today, and while the pandemic is largely a memory for retailers and consumer brands alike around the world, their current geopolitical environment, with potential tariffs and trade wars making everyday news, has causing leaders from across the retail industry to look more closely at their product sourcing strategies as a critical element of their overall business strategy.

Speaker 1: 1:10

In my work as a consultant, I've been working to provide a number of retail clients with new product manufacturing resources from a diverse number of markets around the world.

Speaker 1: 1:22

Sourcing teams and merchants alike repeatedly tell me that paying a little bit more for a reliable source of new or existing products is acceptable to them, while still trying to keep prices affordable for inflation-weary consumers and their profitability in line with their financial commitments to shareholders. This effort is not simple or easy for retailers or consumer brands to master Some days it feels a little bit like trying to hit a moving target has made product sourcing strategies an even more important aspect of retail. Now, the silver lining, if there was one, is that our industry is taking a more strategic view of all the elements of value, not just cost. As a retail former retail buyer, it might seem a little strange to hear me say that, but empty shelves and extensive out of stocks are just as bad as higher prices and retail merchandising. Thinking through all the elements of a product sourcing strategy will likely prove to be a healthier long-term approach for our industry, even if it proves to be a painful event in the short term. That's one of the things I've been thinking about. I'm Scott Benedict.