The local supermarket chain is concentrated in the hands of 4 main retailers coded as A, B, C, D, and changing market trends indicate that in the very near future, only supermarket chains owned by these four retailers will continue to exist, along with mini-markets. This change will also be reflected in the procurement model, which is an integral part of retail.In the traditional procurement model, distributors act as a bridge for supermarkets. This process is quite long and expensive. Distributor companies, after receiving products from factories in different countries, store them in their warehouses and in the next stage distribute them to supermarkets. As a result, supermarkets get products at an additional 30%
How does this happen?upermarkets A, B, C, D have orders for different products, and they prepare order lists and send them to the IMEX team. For example, network A informs us that it wants to order 2 pallets, network B 3 pallets, network C 5 pallets, and network D 7 pallets. Our team collects orders. IMEX prepares an order by identifying the country and company offering a competitive price.
We place a bulk order with the X Cheese Factory in Izmir. X cheese factory prepares orders and sends them to our logistics warehouse.
In addition to ordering cheese, supermarkets can also send other product needs to the IMEX team. For example, along with cheese, network A orders 4 pallets, network B 2 pallets, network C 5 pallets, and network D 8 pallets of olives. In the same way, orders are loaded on trucks by us.
We place bulk orders with the Y Olive Factory in Manisa. Olive factory prepares orders and sends them to our logistics center.
When we are close to the factory, the trucks are connected by us. That is, cheese from Izmir and olives from Manisa are brought together and cleared by our logistics team.
In the next stage, when the product is delivered to the ordering markets, the cheese and olives are delivered together.
The result
Execution of product distribution in this form is economical. As distributors, we do not have a warehouse, stock, labor and other needs, so we do not put a 30% margin on product prices. We carry out the process of delivery directly from the company to the supermarket.
In order to carry out the process of receiving products from companies around the world and delivering them directly to supermarkets, the logistics company agreed with IMEX carries out both customs clearance of products and distribution to supermarkets. Depending on the choice of the supermarket, the products can be distributed either in the market or in warehouses. The implementation of logistics, customs and distribution by one company gives us both time and material advantages.
In this model, we provide 25% cheaper products to supermarkets at a maximum cost of 3% or 5%.Thus, by selling a supermarket product 10% cheaper, it provides customers with a 10% discount, as well as the opportunity to invest more by increasing the margin by 15%.
