Central Purchasing
Dealing with various suppliers, our supply chain is coordinated via our supply management center, where regional purchasing managers of retail and HoReCa divisions coordinate orders and shipments with selected producers.
The access to our supply management center is available for authorized suppliers upon approval.
This helps us to maintain efficient relationships with our qualified suppliers while sustaining operational requirements in an optimal manner.
Every one of our associated suppliers is an expert in a specific product category and complies with our markets requirements.
REQUIREMENTS & COMPLIANCE
From procurement through to distribution
- Quality criteria and product safety
Intelligent stock management based on barcodes
Efficient distribution system
Special requirements
- Tracking system based on EU-Norms
Display assembly
Packaging
Labeling
Supplier Selection
Our associated regional distribution chains use a structured approach to select products from potential suppliers.
This process vary based on region and the type of products involved, but the general process typically includes the following steps:
Needs Assessment:
Regional distribution units constantly identify the needs of certain products and desires of their target customer base.
Product Discovery:
The central purchasing team is actively looking for products that can fulfill the identified needs.
Supplier Evaluation:
Before selecting a supplier, central purchasing team evaluates potential candidates based on criteria such as:
- Production capability
- Quality control processes
- Scalability
- Delivery lead times
- Cost structure
- Compliance with regulations and standards
Product Evaluation:
Purchasing team of regional distribution units assess the quality, design, packaging, and other relevant attributes. They might also evaluate:
- Product durability
- Warranty and after-sales service
- Marketing and promotional support provided by the supplier
- Retail margins and suggested retail price
Negotiation:
Once a supplier and their product are shortlisted for regional retail distribution chains, the certain terms should be finalized such as:
- Actual purchase price
- Minimum order quantities
- Payment terms
- Delivery schedules
- Returns and allowances for damaged or unsold goods
- Marketing and promotional commitments
Pilot or Test Launch:
Regional retail distribution units may choose to launch the product in a limited number of stores or regions to gauge customer response, sales velocity, and any potential issues.
This phase helps to make informed decisions about a full-scale rollout.
Onboarding:
If the product is selected, the regional distribution chains will work with the supplier to set up processes for regular orders, deliveries, and restocks.
This also involves integrating IT system for smooth order processing and inventory management.
Full-Scale Launch:
The product is rolled out to all targeted stores, promoted (if agreed upon), and monitored for sales performance.
Continuous Review:
Regional retail distribution chains consistently monitor sales data, stock turnover rates, and customer feedback.
If a product does not meet expected sales or profit margins, or if there are consistent issues or complaints, regional distribution chains might renegotiate terms with the supplier or discontinue the product.
Feedback Loop:
Regional retail chains can provide feedback to suppliers on product performance, issues faced, or any suggested improvements.
This feedback can lead to product modifications or packaging changes.
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Given the above process, potential suppliers can increase their chances of being selected by offering high-quality products that meet our market needs, presenting a strong business case, and being responsive and flexible to the regional retailer’s requirements.
For more information suppliers may contact our Import Division.
Supply Chain