Retail store operations leaders often zero in on customer-facing activities to boost revenue and the bottom line. Yet, there is a hidden gem in operations that can significantly help the P&L and associate efficiency: indirect procurement.
Indirect procurement refers to the goods or services bought for internal stakeholders that enable a company to function. Buying what keeps the store operating may not seem like a big deal—office supplies, cleaning materials, breakroom vending—but saving as much as 30% in each of these categories can dramatically improve your store’s P&L sheet.
As the retail industry struggles with hiring and retaining talent, store associates are being asked to do more, especially as buy-online-pick-up-in-store services become more prevalent. As expectations and responsibilities have increased, workers have also raised their expectations and have little tolerance for clunky, dysfunctional tools that slow them down.
Store associates will call out tools and processes that aren’t working, and if nothing is improved on, they may leave for other opportunities.
As Brandon Kruger, VP of Retail at Office Depot knows all too well, “When you can provide tools that are intuitive and make sense, that’s what resonates with our store associates,” Kruger says. “You can’t make their jobs harder when we’re asking so much already. It’s about making sure we have an efficient work environment they enjoy.”
Indirect procurement, a strategic investment and competitive edge
Indirect procurement spend and processes are often overlooked. Even 5% savings on everyday categories and an improved associate experience can increase profitability and create more time for store managers to train staff or meet with customers.
“Procurement is transactional, we need all these indirect supplies at the right place and to arrive on time,” Kruger says. “I was looking for help to increase productivity with a tool that’s easy to implement…Varis was super easy for us to deploy and start using right away.”
The opportunity is clear for store operations managers—promote a new era of savings and turn indirect procurement into a strategic investment and competitive edge. With Varis, retailers are getting an intuitive purchasing platform that requires minimal training and comes with time-saving tools like quick search and favorites to save store associates precious time and reduce hassle with procurement tasks. Also, the Varis purchasing platform is designed to automatically ensure that every order adheres to company policies and contracts.
“Our associates love Varis compared to our old systems and processes,” Kruger says. “The suppliers Varis introduced to us have saved our organization a ton of money and our store operations managers love it.”
Varis makes indirect procurement more transparent and more accessible, setting the stage for a healthier P&L and operations become more efficient, customer-focused, and associate-friendly.
Watch the video to understand why Office Depot chose Varis. Contact the Varis retail team to discuss how this technology can be an investment in the future of your store operations.
