14 April 2021
Topics in this article
  • Retail

Our client is a global leader in retail and wholesale pharmacy store that specializes in beauty, health, and wellness products through convenient retail locations.

The business was undertaking a wide-ranging cost transformation program as it invested in future growth and transformation initiatives. 


The Goods Not For Resale (GNFR) cost transformation program had a savings target of more than $1 billion. Most of the low-hanging fruit had been achieved through several competitive sourcing cycles.

The team had turned to more strategic and innovative initiatives to attract new solutions from suppliers and drive positive change within the business. One such initiative was a working capital program, made complex by a combination of global labor laws and already lengthy payment terms. 


We first assessed the data and identified which suppliers had the highest working capital value. This resulted in targeting 300 key global supplier partners specifically for payment term improvement.

We developed an approach, change process, and communications plan with both internal and external stakeholders, working with each partner on a case-by-case basis and checking in weekly with the senior leadership team. We were able to deliver the GNFR program within six months. 


The program made a significant working capital contribution towards the $1 billion cost transformation target in the GNFR space. After implementing new payment terms policy, our team moved to the Goods For Resale (GFR) business to replicate the process for the client and delivered an additional working capital improvement, for a collective benefit of nearly half a billion dollars within 18 months. 

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