Your FAQs answered

GNFR (Goods Not for Resale) Cost Consolidation

Maybe you’re new to GNFR, or you might be an experienced procurement specialist for a large retailer.

Whatever stage you are in your GNFR role, cost consolidation is becoming more and more important for GNFR teams. That’s because retail margins are still small, and GNFR spending accounts for around 25% of retailers’ annual operating costs.  

We’ve pulled together a list of FAQs around GNFR cost consolidation to give you answers to some of the most important questions.

What is GNFR (Goods Not for Resale)?

GNFR are the items that a retail company purchases which won’t be sold to customers, but are essential for the day-to-day operations of the business. For example, office supplies, cleaning products, packaging materials, and in-store fixtures and fittings.

Why should we centralise our GNFR purchasing?

Centralising your purchasing helps to control your GNFR spend by leveraging economies of scale. Not only can you take advantage of your GNFR partner’s purchasing power, but by consolidating orders from multiple stores into one larger order, you can benefit from better terms and prices, leading to cost savings and a more efficient procurement processes.

How can negotiating better terms with suppliers help with cost consolidation?

Working with suppliers that can offer better prices or terms based on bulk purchasing, or long-term agreements can significantly reduce your costs. Establishing a GNFR supplier’s capacity and buying power is crucial, especially in turbulent markets, as they can provide stability and potentially better deals.

Why is reliability important for GNFR cost consolidation?

It’s important to explore the resilience of a GNFR supplier's supply chain, especially during turbulent times. Reliable suppliers with localised supply chains and solid crisis planning can help avoid unexpected shortages and sudden cost increases. This ensures a steady supply of necessary goods and stable costs for you.

How can consolidating deliveries help with GNFR cost management?

By reducing the number of deliveries, retailers can benefit from economies of scale and lower transportation costs. Consolidated deliveries also help reduce environmental impact. Establishing ordering deadlines and fixed delivery dates with suppliers makes this process more efficient.

What are the benefits of standardising GNFR product ranges?

Standardising GNFR products simplifies your procurement, helps control costs, and avoids unnecessary spending. By limiting the variety of products, such as having fewer types of till rolls or pens, retailers can streamline purchasing and ensure consistency across all stores.

What can help with GNFR cost consolidation?

A reliable, experienced GNFR partner can streamline your GNFR ordering and track spending, giving you valuable data for analysis. This data can help you to identify trends and opportunities for further consolidation and cost savings, making the procurement process more efficient and transparent.

What is the difference between value and cost in GNFR procurement?

The cheapest option isn't always the best value. For instance, purchasing cleaning solutions in larger quantities may cost more initially but offer better value over time. Conducting regular cost-benefit analyses can help retailers ensure that the GNFR items purchased provide good long-term value for your business.

Why is clear categorisation of GNFR items important?

A clear and logical categorisation system for GNFR items helps you to maintain a streamlined inventory, avoiding duplication and over-ordering – which can add to your expenses. Categories like cleaning supplies, office equipment, packaging materials, and in-store equipment help in managing inventory efficiently and reduce your operational costs.

How does standardising GNFR products across multiple stores benefit retailers?

Standardising GNFR products across your retail stores ensures consistency in ordering and billing processes. It simplifies your procurement as all stores are familiar with the available product ranges, preventing unauthorised orders, and helping with financial forecasting. This consistency helps you control costs and improve your overall procurement efficiency.

Are you ready to partner with a GNFR procurement team that helps consolidate your costs? Get some service with guts and speak to our team on +31 (0) 88 494 20 80 or email us at



Marc Wullems
Purchasing Manager

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