Such opportunities are created by the integration of purchases and the centralization of this management function at the retail chain integrator. By pursuing common goals related to the rationalization of retail chain procurement, the integrator takes action in two basic directions: obtaining competitive assortment offers and purchase prices for goods (both for the participants of the integration agreement, i.e., the enterprises, and for consumers) and reducing distribution costs. These activities are subordinated to shaping value in the supply chain, the effects of which the consumer evaluates through the prism of price levels, durability and quality of offered products, perception of the company offering these products (company image, brand reputation, fashion), and the level of service in the broad sense (e.g., availability of goods, delivery time, credit for purchases).
In the third quarter of 2004, the Institute of Internal Market and Consumption (IRWiK) conducted research (in the form of a categorized interview) among 40 purposefully selected significant integrated retail chains (mainly franchise and quasi-franchise chains – 65%, but also retailer associations – 20% and purchasing groups – 15%) regarding the cause-and-effect relationships between the integration of purchases and the shaping of the competitiveness of these chains from the perspective of creating a value chain. The article focuses on the issues of using IT tools in purchasing management in the context of value creation processes. The IT solutions used in integrated retail chains are primarily intended to support management processes serving the implementation of a strategy of building competitive advantage based on the cost leadership of the chain, i.e., based on relatively low prices. It should be noted that competitive price strategies are used by half of the significant integrated chains. This is of significant importance for strengthening the competitiveness of retailer associations and purchasing groups; in franchise (quasi-franchise) chains, it plays a secondary role. The use of this strategy depends primarily on improvements in the logistics service of the integrated retail chain. As a result of this process, a reduction in distribution costs, improvement in delivery organization, etc., is achieved, which enables the lowering of price levels for offered goods. Of course, this is also influenced by the purchase terms negotiated with the supplier, and above all in terms of prices for delivered batches of goods. The process of logistics improvements, being a significant cost-generating factor in the sphere of purchasing, becomes a basic element of supply chain management based on the value creation method.
An integrated retail chain, striving to maximize value in the sphere of purchasing, takes actions aimed at choosing the most favorable variant of logistics service for it. Various criteria for this choice are used. IRWiK research shows that more than half of integrated retail chains make the choice of a logistics service variant based on two criteria (Fig. 1):
• shortening the flow time of goods and information, including shortening the order processing time
• improving the level of logistics service through the punctuality of deliveries and their reliability in accordance with the chain’s expectations, as well as the accuracy of information and documents accompanying deliveries.
In addition to the above criteria, a similar portion of integrated chains make the choice of a logistics service variant by following the principle of optimizing purchasing costs at a assumed level of service quality. At the same time, the level of costs in all possible alternative distribution channels is analyzed. In the course of choosing a logistics service variant, a significant part of integrated chains also takes into account:
• maximizing the share of turnover in the value of current inventory (among the surveyed integrated chains, the value of this indicator ranges from 40% to 95%)
• reducing complaints in connection with poor order fulfillment
• reducing losses in the quality of goods in logistics processes.