PROCUREMENT TECHNOLOGY
Tech-enabled procurement : Maximising efficiency and effectiveness Technology plays a crucial role in enhancing Big Lots ’ procurement operations . By leveraging advanced procurement technologies , the company maximises efficiency and effectiveness in its supply chain management , ensuring that it can deliver exceptional value to customers consistently . “ We have a proprietary model that evaluates deals based on aspects such as price and inventory position ,” Juan says . “ Technology also plays a central role in efficiently routing products from production to our distribution centres .”
Procurement strategies : Finding high-value solutions With such an emphasis on offering its customers the best bargains , it is down to Big Lots ’ procurement team to find a deals with suppliers to pass savings on to the customer . Kevin explains that Big Lots is getting back to its roots as America ’ s Discount Home Store .
“ In terms of sourcing and supply , we ’ re the total solution when CPG companies , manufacturers and small businesses are looking for controlled distribution of excess , obsolete products , over produced inventory , cancelled orders , label and packaging changes , discontinued items , and end of life inventory .
“ These are typically furniture , décor , and pantry items . Big Lots ’ buyers are trained in procuring and valuing a diverse assortment of products
“ Effective procurement means we source in-demand products for the home at the best possible price ”
KEVIN KUEHL SVP , HEAD OF MERCHANDISING , ASIA GLOBAL SOURCING OFFICES , BIG LOTS
below competitors ’ retails . This allows Big Lots to offer more choices , keeping our customers coming back for their home essentials at unmistakable value .”
At the heart of its deals is sourcing effort , which Kevin described as ‘ essential ’, and it is core to the business strategy to provide bargains and closeouts . “ Effective procurement means we source in-demand products for the home at the best possible price and pass that unmistakable value directly to our customers ,” Kevin says .
“ We ’ re also modernising our supply chain to support more closeouts and bargain deal flow . This helps improve our ability to cycle inventory and continuously bring value and newness to our Big Lots customers ,” adds Juan . procurementmag . com 153