Wins from the Road: Improving the Health and Wellness of FF&E Spend
A leading health and wellness retailer had a problem. As part of a national rebranding effort, the company was rolling out a new store concept and design across its 700+ US locations. It was a massive, long-term project that included customized flooring, lighting, signage, and fixtures, with each component requiring bespoke specifications and materials.
With modern materials and designs already selected, the multibillion-dollar retailer knew what they needed. What they didn’t know was whether or not they would be paying too much for it all.
The retailer planned to roll out dozens of rebranded stores within the next year, so time was at a premium. And with intentions to remodel hundreds of additional locations in the following years, a scalable, turn-key sourcing solution was urgently needed to make sure the transformative project was executed with the best rates without sacrificing quality or adjusting the brand’s specifications.
Enter the LogicSource team led by Procurement Manager and FF&E (Fixtures, Facilities and Equipment) category expert, Jen Fazio. “We understood the importance of maintaining specific details and materials as they roll out the new designs across their stores,” said Fazio. In service of that end, the team conducted an in-depth analysis of the retailer’s Store FF&E program and found rate inefficiencies across several FF&E categories that were impacting their bottom line and consequently slowing the pace of the rebranded store rollouts.
LogicSource did what it does best. By leveraging $6.0 billion of cross-portfolio spend, real-time market intelligence, and strategic supplier relationships, the team secured bids offering savings across key FF&E categories, including Millwork (56%), Exterior Signage (30%), Lighting (26%) and Flooring (20%). The result was 44% annual FF&E savings and a procurement solution that put the retailer’s rebranding project back on track.
“We were able to deliver strong savings without having to change specifications, and in many cases, suppliers,” Fazio said. “Our aggregate spend leverage and market intelligence allowed us to secure the best possible price, with minimal changes or disruptions to the rebranding program at large.”
All that considered, it’s no wonder why nearly every organization struggles to get procurement exactly right. Even with their impressive resources, the health and wellness retailer knew there was no way they could manufacture the years of subject matter expertise, unparalleled market knowledge and leverage, and masterfully applied focus that LogicSource brought to the table.
By bringing in an industry leader like LogicSource, their looming cost and sourcing problems were resolved. Best-in-market rates were secured that satisfied the specifications and custom materials needed, and with costs now under control, the retailer could confidently proceed with its ambitious rebranding project.
About LogicSource:
LogicSource was purpose-built to drive profit improvement for their clients through better buying. LogicSource focuses exclusively on the sourcing and procurement of goods and services not-for-resale, which typically represents 20% of a company’s revenue and the most significant area of spending inefficiency. Tested time and again in the marketplace, their proven engagement model builds profitable partnerships that achieve 4-15x ROI.