Managing Goods-Not-for-Resale (GNFR) is important in a retail business because it can have a significant impact on both the top and bottom line. GNFR expenses refer to the costs incurred on items that a business purchases for its own use, rather than for resale to customers. These can include items such as office supplies, fixtures, and equipment. Although GNFR expenses are not directly tied to revenue generation, they can still have a significant impact on a retail business’s profitability.
Reducing costs and improving profitability
In a retail business, managing GNFR expenses effectively can help to reduce costs and improve profitability. By identifying and tracking GNFR expenses, a business can identify areas where cost savings can be made, and make adjustments accordingly. This can include negotiating better prices with suppliers, standardizing purchasing processes, and identifying areas of overstocking or stockouts.
Driving Supplier performance
Additionally, managing GNFR can also help to improve supplier performance, by implementing performance metrics such as On-Time-In-Full (OTIF) to measure delivery performance, and implementing a continuous improvement process to drive improvements in supplier performance. This can lead to more reliable delivery schedules, reducing stockouts, and increasing customer satisfaction.
Ensuring long-term success
In summary, managing GNFR is important in a retail business because it can have a significant impact on the bottom line, by reducing costs and improving profitability, as well as improving supplier performance, leading to more reliable delivery schedules, reducing stockouts, and increasing customer satisfaction. By managing GNFR effectively, a retail business can ensure long-term success and profitability.
Lumatrak’s PULSE software offers you tools that will help make sense of the chaos by connecting the processes, systems and communications supporting your purchases from the time of purchase to final delivery to your site.