Uncovering hidden costs savings in diverse retail companies

This study explores the hidden costs that often cause lost profitability for retail companies and ways to expose and eliminate such challenges. The researcher will study a Family Organization established as a holding company that includes more than sixty different business units with over forty branches; and will highlight issues concerning the complex nature of the company’s operations of its branches as interconnected, multi- functional business units. These, if enhanced, may be used to create a better working environment of an organization. Due to the growth of companies simultaneously in the vertical and horizontal dimensions, the companies remain stagnant rather than using strong routines of employing the Kaizen approach. They may just regard the higher costs as a sign of growth hence they can be cheerful with it. Similarly, it aims to create or develop new financial stability and maximum profitability, analyzing procurement cost behaviors, procurement methods purchases, and expenditure trends. Conducting a comparative analysis between ERP and qualitative data it was possible to define low performers such as procurement, billing and resource management. Some of the findings include facilitating stable purchasing habits, revisiting and reformulating supplier partnerships for cost savings as well as improving resource use to accomplish these and more. This study also alludes to the possibilities of “Lean Six Sigma” and similar approaches to waste and process improvement while emphasizing strategic sourcing and employee engagement as primary cost savings enablers. Hence, the study suggests retailing develops upon data analytics and fast decision-making by adopting supplier relationships and a continuous improvement culture. The different implementation and proactive measures such as the ones mentioned enable businesses to cut on their grey costs and survive in an overall competitive ecosystem of the retail world. As a result, the findings present retail firms with concrete solutions that benefit their financial performance and thus help them have a better sustainable competitive advantage in a saturated market.