Retail and consumer goods enterprises are currently challenged by important issues – the developing trends in multi-channel management, handling social responsibility across the supply chain, implementing global sourcing strategies, facing wellness issues and the current economic crisis due to credit crunch. We have specialist teams and individuals who understand these challenges.
PwC’s Retail & Consumer Industry experts are professionals with vast experience and are working with all types and sizes of retail and consumer goods companies – multinationals, local companies, privately-owned organisations, family businesses – as well as entrepreneurs and private individuals, providing industry-focused audit, tax and advisory services.
The ability of retail and consumer goods enterprises to identify, react to and take advantage of trends in the sector will define the future winners in the marketplace.
Competitive pressures, especially the pressure on sales growth and profit margins, are encouraging companies of all types to pursue globalisation through M&A and industry consolidation. The availability of information technology and data capabilities have made serving and sourcing from global markets easier, thus permitting the adoption of new product and sales strategies, economic models and inventory management techniques to fuel growth. Consolidation, resulting in greater operational efficiencies and economies of scale, is shaping the retail industry and is seen as a way of strengthening one’s position in an industry with fewer, larger players.
The global sourcing of products and the concentration of power within the industry are two factors affecting all retail and consumer companies. Suppliers are under pressure to deliver cheaper priced products and to deal more efficiently with retailers, who want to deliver everyday low prices. Global sourcing and acquisitions have been both a response and an outcome. In turn, retailers needing to increase sales and profit margins are expanding to global markets and consolidating to realise greater power in dealing with their suppliers.
PwC has the range of skills to assist companies expand to new markets and consolidate through mergers & acquisitions. Our transaction services specialists can handle the strategic, operational or financial aspects of a deal, while our audit and assurance practice helps companies optimise business functions such as shared services and supply chain, mitigate risks in new operating situations, and provide advice on managing new regulatory environments. In addition, our tax professionals are skilled at providing tax strategy and planning advice across international borders while our human resources specialists can help resolve labour issues in foreign markets and take care of expatriate management.
Supply chain management encompasses the multitude of processes and operations that transform raw materials into products and distribute those products through retail sales channels. As a result of profit pressures, the availability of new technologies, and the emphasis on value enhancement, the supply chain has been redefined and is now viewed as a strategic element offering companies opportunities for greater collaboration and cost efficiencies, improved inventory management, real-time communication, better supplier / provider relationships, and overall, operational excellence.
Global markets have made the supply chain more complex than ever to manage. So, in order to remain competitive, companies must place greater attention on improving and optimising their supply chains. Optimisation of the supply chain is particularly critical to retail and consumer products companies. R&C companies with extended supply chains are being challenged to eliminate waste, improve supplier relations, better manage inventory and be more cost efficient in operating their far-flung operations.
PwC provides the following services to assist companies with optimising the supply chain:
With the move to International Financial Reporting Standards (IFRS) for many of the world's public companies and the far-reaching mandates of Sarbanes-Oxley, financial accounting has become a lot more complicated. And if the past few years are any guide, the future holds more regulations, new requirements, and an increasing compliance burden. As business becomes more global, with new markets opening up seemingly every day, a company’s financial accounting must meet global standards.
For all organisations that need high quality accounting advice, PwC has the breadth and depth of knowledge and technical expertise to help. We are the world’s leading audit and assurance organisation. Our financial accounting and accounting technical advice, support tools, guidance, and training will help improve the quality of your company’s financial reporting.
Enterprise Risk Management (ERM) is systematic approach to identifying and managing an organisation’s business risks. ERM offers a proven method to align risk appetite with strategic goals, deploy resources more effectively, reduce operational surprises and losses, and improve risk response.
Managing enterprise risk is particularly challenging for retail and consumer products companies. The growing globalisation trend and the need to operate in business environments with different cultures, laws, and environmental concerns, along with the complexity of sourcing materials and human capital for manufacturing or final sale of the product, creates a number of potential risks for retail and consumer companies.
PwC can help retail and consumer companies address risk in several key areas, including:
Partner, Assurance, In charge of Retail & Consumer, PwC Cyprus