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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

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