NORWALK, Conn. (Sept. 17, 2014) — Pep Boys – Manny, Moe & Jack has engaged LogicSource Inc., a sourcing and procurement services firm, to improve its procurement processes as part of its drive to reduce costs and enhance customer satisfaction.
The process improvements and costs savings will support Pep Boys' “Road Ahead” expansion strategy, LogicSource said.
Pep Boys recently disclosed plans to step up efforts to reduce expenses and consider closing unprofitable stores in the wake of reporting reduced operating income and a net loss in its second quarter.
“By building more efficient sourcing and procurement processes and delivering dramatic cost savings for Pep Boys, we can reduce time to market and free up resources that can be invested back into Pep Boys' ‘Road Ahead' strategy,” said LogicSource President and CEO David Pennino.
“Through our rare blend of strategy, automation, and execution, LogicSource created a custom solution to deliver long-term value to Pep Boys, while improving their bottom-line profitability today.”
Pep Boys President and CEO Mike Odell said LogicSource's “invaluable expertise in sourcing and procurement, combined with their considerable leverage with suppliers in our target categories, is vital to optimizing our ‘Road Ahead' marketing and retail operations, and enables Pep Boys to remain focused on our core competencies.”
He lauded LogicSource for providing the in-depth analytical work up front, providing Pep Boys with a “readily deployable solution before we paid a dime.”
Neither Mr. Odell nor Mr. Pennino commented on the projected scale of cost savings the multi-year contract with LogicSource might be able to provide.
LogicSource claims its approach combines strategy, execution and automation to add value by optimizing processes, which leads to cost savings. As part of its work, LogicSource examines a client's people, processes, systems and supply chains to develop a custom solution to optimize spending.