Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?

A low-cost fashion retailer based in Europe is looking at adding value in their procurement activities. The retailer buys clothing for resale with a very small profit margin applied, relying on volume sales to make a profit.

Which of the following added-value approaches will be the most critical for the procurement team of the retailer to focus on with their supply chain?
A . Improving timescales
B . Quality enhancement
C . Reduction of inventory
D . Price management

View Answer

Answer: D

Explanation:

Price management is crucial for low-cost retailers to maintain profitability. This includes negotiating better pricing, managing costs effectively, and ensuring competitive pricing for volume sales.