The Retail Brand Management Sourcing Benchmark Study

AberdeenGroupThe Retail Brand ManagementSourcing Benchmark StudyThe Next Generation of Strategic SourcingJune 2004Sponsored byThe Retail Brand Management Sourcing Benchmark Report Executive Summary ore than 70% of retailers are also brand managers; that is, they design and source product for resale under proprietary in-house labels. Adding this pri-M vate-label product to the retailer’s merchandise mix is intended to improve overall gross margins and enhance retail brand awareness. Aberdeen Group recently sur-veyed more than 100 retail companies to determine best, worst, and most common prac-tices in private-label brand management. This report reviews the results of that survey while highlighting the challenges that brand managers face in implementing strategic, rather than purely tactical, sourcing practices. Key Business Value Findings Retailers remain mired in organizational structures that are ill suited to 21st century com-petitive challenges and opportunities. Although they are aware that immediate business benefits are attainable through a more holistic examination of strategic sourcing opportu-nities, they are mostly unable to implement these strategies within their organizations. Spreadsheets, faxes, and e-mail remain the most commonly used sourcing technologies even though more comprehensive Web-based technologies are available and affordable. Implications and Analysis Retailers’ inability to examine and implement better sourcing ...