Strategy Support to Review Store Network Strategy and Source Partners

The Group has a network of stores operated by partners, with the contracts expiring soon. In the face of digitisation and changing external forces, they needed a network strategy to set the path for the next 5-10 years. In addition, they needed support to strategically source the operating partners to generate operational efficiencies and cost savings.

Expert360 were able to provide a team of Experts to help evaluate the financial and operational health of the network at a store level, and recommend operational efficiencies and cost savings.

The team were able to build a financial model to measure and forecast the economic value of the network, evaluate and revise the network footprint, assess the partnership model and the partner type, evaluate and benchmark the commercial model and target commercial terms, design and run an RFQ process to implement the target commercial model and terms, and successfully negotiate and secure new contracts under the target terms.

A $115m contract was secured with $11m of negotiated savings. Overall, it is estimated that cost savings of $58m were achieved for the Group.

The simplified partnership model reduced the number of partners required by 75% and increased operational efficiencies. The Expert team more than doubled the forecasted economic value with a more variable commercial model and negotiated savings.

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