NARTA’s founding remit focuses on “Goods for Resale” – products that retailers resell to their customers. In 2011, NARTA extended this remit to also cover ‘Goods Not For Resale’ or ‘Indirects’, the costs associated with doing business. NARTA’s Procurement team act as an outsourced managed service, overseeing the end-to-end category management and implementation of procurement data and systems. NARTA collates retailer needs and presents unified sets of requirements for brands to bid on.
NARTA’s brands realise efficiencies in account management, costs associated with acquiring and retaining relationships and traditional economies of scale, then pass the benefit of these efficiencies on to retailers. Since 2011, NARTA has established brands and contracts in 11 categories. NARTA has managed more than $300M in spend for its retailers and delivered cost reductions of more than $80M continuing to assist in the sustainability of retail businesses today. The structure results in the following benefits for retailers:
Buyers realise the benefits of best practice procurement processes and methodologies applied at a NARTA level
Brands benefit through consolidation and reduced cost to serve
Aggregated demand leads to improved leverage, which results in better pricing
Shared learnings between retailers to help deliver further value through improved processes
Brand performance is improved as a result of the increased level of account management
Categories are established to ensure long term and sustainable relationships, which are mutually beneficial for both brands and buyers