Migros Looks to Streamline Processes in Private-label Business

Swiss retailer selects GNX for sourcing and product development solutions

Swiss retailer selects GNX for sourcing and product development solutions

San Francisco — April 19, 2005 — Swiss retailer Migros has signed up to use sourcing and product development solutions from GlobalNetXchange (GNX) to streamline processes in its private-label business.

Switzerland's leading retailer, Migros sells almost a quarter of the country's food through its chain of Migros supermarkets and other goods through outlets. In addition, it owns a bank and two newspapers, and its annual sales top $15 billion.

Migros is currently implementing GNX ProductVine to manage its ideation process for private label products, which account for approximately 90 percent of Migros supermarkets' offering. The pilot program began in March 2005.

The retailer will also use the GNX Sourcing suite to purchase a range of food and nonfood goods, and the company expects to drive improvements in buyer efficiency and cost of goods sold as a result.

"With private label being our core business, Migros is continually looking for ways to streamline product development, enhance innovation and increase speed to market to create a better experience for our customers," said Jorg Brun, director for marketing food at Migros. "We selected GNX because they could provide the breadth and depth of solutions we needed, plus retail-focus, comprehensive support and access to a best practices sharing community of world class retailers with which we can interact."

Brun said that the company expects to "dramatically increase" new product speed to market and sourcing effectiveness by standardizing its processes and increasing visibility through GNX.

Joe Laughlin, CEO of GNX, said, "With its core business being food private label, Migros' selection of GNX ProductVine is excellent validation of the solution's ability to meet the specialized requirements of food product development."

Additional Articles of Interest

The focus in the retail sector has shifted from managing the movement of goods to managing the information about goods. Read more in "Ramping Up the Retail Supply Chain," in the February/March 2005 issue of Supply & Demand Chain Executive.

For more information on mid-market companies using product lifecycle management solutions to gain competitive advantage, see "Stuck in the Middle" in the April/May 2004 issue of Supply & Demand Chain Executive.