CUSTOMER ADDED VALUE
We at REJS strive every day to add value to our customers. We are working on different levers to improve the efficiency and effectiveness of the supply chain with a direct impact on our customers' financial performance. The three case studies presented, show different situations, challenges, and solutions with which we have created added value for our customers.
11 levers on how we add direct value (P&L effects) to our customers
*Click to enlarge image
FULL SERVICE INTEGRATION
Our client faced multiple challenges in managing established buying offices in Asia.
SOURCING
Our Client - A well-known European e-tail company - a producer of home storage products that operates on a global market, faced challenges in setting up a diverse origin portfolio.
SPEED TO MARKET
The client had faced multiple challenges in forming and implementing a private label strategy successfully.
FULL SERVICE INTEGRATION
BACKGROUND & CHALLENGES
Our client faced multiple challenges in managing established buying offices in Asia.
The primary challenges were:
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High overhead costs
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Monitoring issues
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Lack of processes and quality assurance
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Uncertainty regarding CSR and safe products
THE SOLUTION
REJS conducted a Due Diligence and presented a fully integrated solution, resulting in the discontinuation of the client's own buying operation in Asia, replaced by a buying operation managed by REJS.
REJS’s solution offered transparent and tailored end-to-end supply chain strategy, providing well-balanced origins and establishing a diverse supply base, all using a framework of sustainable resources, with up-to-date CSR, regulations, and processes to ensure quality control and Safe Products. Integrating REJS’s full-service solutions gave the client access to a wide range of services that provided further improvements.
The Client also used complementary services that provided these improvements:
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Benchmark & KPI
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Product development
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Private label strategy
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Photo & design
THE RESULT
The timeline for the transition to full-capacity integration took six weeks. The integration process and operation with REJS were fully transparent throughout, which was essential to give control, cultivate understanding, and cross-functional collaboration. Ultimately it drove continuous improvement and built long-term value.
The integration of REJS’s full-service solutions had these immediate effects:
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Control and transparency
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Considerable cost cut and much-improved margins
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Minimized risk for disruption
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Visibility and traceability
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Speed to market
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Improved quality
Integrating the operation with REJS has been a success story with results that far exceeded all expectations. It was possible due to very close cooperation, commitment, and willingness to change in order to excel.
SOURCING
BACKGROUND & CHALLENGES
Our Client - A well-known European e-tail company - a producer of home storage products that operates on a global market, faced challenges in setting up a diverse origin portfolio. The Client had a long experience in sourcing and production in Asia.
The primary challenges were:
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Heavy dependence on production from one origin
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Limited production capacity
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Difficulties in meeting strict US regulations and import tariffs
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Visibility and transparency issues in tracing raw materials
THE SOLUTION
The analysis combined with in-depth discussion led to a sourcing assignment. The assignment included strategy in finding new factories and origins, product sampling, updated demands for CSR and quality assurance, and reduced prices. The timeline for the assignment was set to six months.
These improvements were also achieved through additional services provided to the client:
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Product development
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Supplier evaluation
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Quality assurance and CSR
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Photo & design
THE RESULT
The assignment was very successful and swift, the process took ten weeks. REJS managed to find new manufacturers and new origins. Not only did the assignment result in improved product quality, significant price reductions, and updated CSR, but also new market segments and potential new product lines.
The added service “Photo & Design” created further price cuts and increased speed to market. REJS developed product photo content for online stores and product catalogs. The assignment further contributed to
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Control and transparency
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Considerable cost cut and much-improved margins
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Minimizing risk for disruption
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Visibility and traceability
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Speed to market
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New market segments
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Product development
The first assignment was very successful and led to continued collaboration, creating new possibilities for the future.
SPEED TO MARKET
BACKGROUND & CHALLENGES
A well-known European retail and e-tail company in the fashion industry.
The organization had made a strategic decision to develop a private label in order to increase market share and profit and strengthen the brand position. The client had faced multiple challenges in forming and implementing a private label strategy successfully.
The primary challenges were:
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Lack of knowledge & experience implementing a private label strategy
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High overhead costs
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Dependency on branded products, A-Brands
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Product, quality, and pricing uncertainty
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Lack of control, failing processes, and quality assurance
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Uncertainty in the market response
THE SOLUTION
After an extensive review of the Client's operations and product range, REJS presented an integrated and customized solution. REJS’s solution implemented an end-to-end supply chain strategy - an ecosystem consisting of a network of producers representing collaboration and development.
Incorporating a Multi-Tier Private Label Strategy resulted in more sales, increased profits, and notably improved payment terms. Speed to market was accelerated as a direct result of “Photo and Design”, More importantly, the collaboration made experimental product launches possible. Testing the market minimized risks and cultivated valuable insight into the industry.
THE RESULT
This was a success story that started with implementing a private label strategy and finding a suitable network of procedures but grew to be much more - a collaboration characterized by transparency, creativity, and making things possible. REJS has since been part of numerous projects supporting the Client's development, strengthening their brand image, and increasing profits.
We have seen these immediate and long-term effects:
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Increased margins/profits
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Private Labels went from 0 to 50% of sales and became the main contributor to profit
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Increased product quality and quality assurance
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Product development
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Increased speed to market
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Improved payment terms / lower MOQ
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Experimental product launches