Shopping Bags Optimization Caase Study with a Retail Client

Key Strategies

Description

Key Steps

Saving%

Design optimization

  • Higher tensile strength of HDPE allows lower thickness for a given carry capacity by ~ 20%
  • ~44% of revenue comes during SALE = 25 Mio of bags
  • 20% savings = ~ 5 Million AED savings
  • Alignment with various business units on moving from side gusset to bottom gusset
  • Distributed weight; Ease of insertion; RM reduction by ~10-20%
  • Most failures occur at top handle, a top-fold reinforced design, increase in usable area

~20%

Material Reengineering

  • Switch mix of bags from LDPE to HDPE
  • Higher tensile strength of HDPE allows lower thickness for a given carry capacity by ~ 20%
  • ~44% of revenue comes during SALE = 25 Mio of bags
  • 20% savings = ~ 5 Million AED savings

~20%

Intelligent Costing / Should Cost Model

  • Should cost calculator linked to input material index
  • Monthly review of the costing

Weighing Scale Label Case Study with a Grocery Retail Client

Key Strategies

Description

Key Steps

Saving%

Specification optimization

  • Use industry benchmarks to reduce the length of the label
  • Reduction of the surface area
  • Alignment with Retail Ops, procurement and the supplier
  • Sampling and approval

~6%

Design Reengineering

  • Introduced Liner-less labels, which helped save the cost on account of liner
  • Alignment with Retail Ops, procurement and the supplier
  • Sampling and approval

~15%

Market Benchmarking/ Negotiation

  • Market scanning and benchmarking
  • RFP & Supplier negotiation

~30%

Promotional Leaflets & Flyers Case Study with a Retail Client

Key Strategies

Description

Key Steps

Saving%

Rate Reduction

  • Higher printing and distribution rates
  • Market benchmarking & RFP
  • Comprehensive RFP for print, production and distribution
  • Rate negotiation

~25%

Demand Management

  • Mitigation of wastage of leftover booklets after each campaign led to reduction of spend
  • Sample data collection on wastage from 3-4 stores of each format
  • Align marketing on the estimated wastage

~10%