GNFR is defined as “Goods Not For Resale” can also be referred to as Indirects or Non-product Related (NPR) depending on the organizational terminology. Essentially all three are the same thing; goods and services which are not sold to the end customer, hence GNFR procurement.
Historically GNFR procurement has often been viewed as what is needed by a retailer to enable it to function, rather than to enable it to sell. As such it has often been the poor cousin of GFR (Goods for Resale), deemed less important, less able to impact business performance and sadly under-invested. In procurement terms, if you had been moved into GNFR procurement, you might have assumed that you had done something wrong rather than right.
GNFR can influence why and how a customer chooses to purchase
However the world of GNFR is changing. Our recent whitepaper explains how generations shift and technology evolves, GNFR is playing an increasingly important role in influencing “why” and “how” a customer chooses to purchase. This is now almost as, or even more important than what they purchase.
The illustration above demonstrates many of the GNFR purchasing categories which include buildings, maintenance contracts, logistics, back office functions, security, contractors, technology solutions and IT, marketing services, marketing, design, media alongside people, services and utilities. It becomes quickly obvious how much influence GNFR can have on the visual and emotional triggers which may encourage a shopper to choose one retailer over another.
What can a strong GNFR procurement strategy deliver?
A strong GNFR Procurement strategy is important in any business but it is increasingly important in the changing Retail sector. What can a strong GNFR procurement strategy deliver?
- Optimisation of the cost of goods or services.
- Improved back office and supply chain process.
- Visibility and control of expenditure and risks.
- Innovative solutions to engage customers and their loyalty
Whilst most organisations understand the process of buying and selling GFR, it is often a surprise that whilst lower in value, GNFR is more complex and difficult to buy than GFR….
|Potential suppliers in market||High||Low|
|Number of decision makers||High||Low|
|Impact on customer experience||High||Mid|
|Number of suppliers||High||Low|
|Complexity of supply markets||Low||High|
|Likelihood of maverick spend||High||Low|
Learn more about GNFR in Retail
For further details about the role of GNFR in retail please take a look at our white paper The Great Retail Opportunity by clicking on the image below:
You can also read more about GNFR in retail here on our website
On this GNFR information page you’ll discover more about how, in the battle for retail revenues, GNFR (Goods Not For Resale) is a possible competitive advantage that often gets forgotten. Nonetheless, we argue that it is one that could make a significant contribution to the experience you offer as a retail brand.