A company’s reputation is a dynamic asset that is earned and shaped each day as customers constantly re-evaluate what is most important to them.
In retail especially, with consumer tastes and preferences constantly changing, demand for product transparency at an all-time high, and expectations for sustainable business practices rising, the standards for earning and keeping a positive brand reputation are much higher – and so are the stakes. Buying the wrong goods and services, or the right ones from the wrong suppliers, can directly influence the external perception of a company’s brand.
Knowing what you’re buying and from where and which suppliers helps inform better buying decisions that lead to greater customer loyalty, satisfaction and a solid corporate reputation. In fact, despite a relatively bleak outlook for the retail sector, TJ Maxx has grown its brand value by 79 percent over the past year by offering high-end, quality products at affordable price points.
Retail Differentiation Stems from Smart Procurement Strategies
What steps can companies take to emulate TJ Maxx’s hike in brand value? Success starts with a smart, holistic approach to procurement that allows retail teams to differentiate on product and price. Having the right mix of best-in-class technology, skilled people and resources can help retailers navigate external pressures that threaten brand image. There are a few critical procurement strategies that will bolster the supply chain and strengthen the brand at the same time: