NGA, SIB Launch Cost-reduction Program
Oct 30, 2012
The National Grocers Association (NGA) has formed a partnership with SIB Development & Consulting on a new program designed to help reduce monthly fixed costs for its member grocers and wholesalers.
“With rising operating costs across the board, our members in the independent grocery industry face constant challenges that impact their bottom line,” said Peter J. Larkin, president and CEO of the Arlington, Va.-based NGA. “There are only two ways to improve profits: by increasing sales or by reducing costs. We have worked with SIB to create a program that can help our members reduce their costs at no financial risk to the grocers.”
“We know that independent grocers are the true entrepreneurs of the grocery industry and are dedicated to their customers, associates, and communities,” said Dan Schneider, founder of Charleston, S.C.-based SIB Development. “Our in-depth knowledge across a wide spectrum of spending categories can help those grocers ensure they are getting the same pricing the big guys get.” Schneider added that SIB’s payment is predicated upon actual cost reduction for its members, adding that “$10,000 a month in profits would require selling $3-5 million more in groceries every year. Or grocers can let SIB find that money in savings on monthly costs, with no financial risk.”
The NGA represents the retail and wholesale grocers that comprise the independent sector of the food distribution industry.