Idea Lounge

< back

Why Not-For-Resale Savings Could be the Key to Unlocking Profitability

By Editor |

The last six months have been among the most challenging many businesses have ever experienced. With the economy closing—and still only partially reopened—the retail and consumer packaged goods (CPG) industries have been disproportionately affected. According to a recent study conducted by LogicSource in partnership with Coresight Research, a data-driven retail and technology research firm, 88% of retail and CPG executives surveyed stated that COVID-19 has had at least a moderately negative impact on the profitability of their business, and nearly 50% said pandemic changes were extremely impactful.

Titled “Why Not-For-Resale Savings Could be Key to Unlocking Profitability”, the findings in the co-authored study are derived from a July 2020 Coresight Research survey of 220 executives at North American retail and CPG companies. The survey was designed to assess the impact of the COVID-19 crisis on profitability, reveal opportunities those companies have to address profit declines, and determine the willingness and ability among retail and CPG leaders to focus on reducing Not-For-Resale (NFR) expenses. 

Conducted by LogicSource and the Coresight Research team, the study was led by Coresight Founder and CEO, Deborah Weinswig, an award-winning global retail analyst and a specialist in retail innovation and technology. What Deborah and her team found was an industry in the midst of a profitability crisis. According to the study’s findings, when executives were asked about how critical their financial situation is, 51% of respondents indicated the situation is more than “moderately critical”, while 11% stated that their business may not survive if trendlines continue in the wrong direction.

As organizations face critical decisions in their profitability struggle, the pandemic and its effects drag on without a clear end in sight. With the problems well-defined, deeply rooted, and urgent, we at LogicSource along with our partners at Coresight Research turned our attention to the strategies that retail and CPG organizations are implementing to mitigate the effects of the COVID-19 pandemic. What we discovered was NFR expenses were often overlooked when attempting to boost profit margins. Nearly two-thirds of executives surveyed admitted the shortcoming, with 66% agreeing that “there is a lot more [their] organization could be doing to cut costs associated with NFR goods and services”.

“There are opportunities for NFR savings in almost every area of a retail or CPG business, but the challenge is analyzing those areas and determining which will result in the largest ROI with the least amount of internal disruption,” Weinswig explained. “It is important, especially in times of crisis, that retailers prioritize NFR and have a focused strategy for how to approach this analysis,” concluded Weinswig.

This can seem like a big ask of leaders at a time when most are focused on day-to-day survival. But, consider this: of the respondents that have previously evaluated, or are currently evaluating NFR expenses, 65% experienced profit lifts of greater than 3%. What difference could that savings make for your business right now?

To get a deeper understanding on how NFR savings can provide your organization with a significant profitability boost, check out the full report at, or view and download the full PDF below.

Why Not-for-Resale Savings Could Be the Key to Unlocking Profitability Sep 15 2020

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 area of greatest spending inefficiency. Tested time and again in the marketplace, their proven engagement model builds profitable partnerships that achieve 4-15x ROI.