Consolidation of Vendors, Retailers and Healthcare insurers of Managing Human Resource(MHR) What is Consolidation? Consolidation of vendors Consolidation of retailers Consolidation of healthcare insurers Reference

1. Consolidation of Vendors,
Retailers and Healthcare
insurers
Presented by:
Group No. 15
Dhvani Mehta 26
Amit Vaja 57
Pranav veerani 60
Guided by:
Dr. Radhika Gandhi
Assistant Professor
GSMS GTU
Graduate School of Management Studies
Managing Human Resource(MHR)
Gujarat Technological University

2. Content
● What is Consolidation?
● Consolidation of vendors
● Consolidation of retailers
● Consolidation of healthcare
insurers
● Reference

3. Consolidation

4. What is Consolidation ?
Business consolidation is the combination of several business units or several different companies into a larger
organization.
Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes.
A business consolidation is most often associated with mergers and acquisitions in which several similar, smaller
businesses are combined into a new legal entity and the original entities cease to exist.
Business consolidation can result in long-term cost savings and a concentration of market share, but in the short-
term can be expensive and complex.

5. Consolidation of
vendors

6. Consolidation of vendors
What is vendor consolidation?
Vendor consolidation is a procurement practice that involves lowering the number of vendors your company buys
from. Instead of spreading out your spend across a large amount of vendors, you focus your spend on a limited
number of select vendors.
The Benefits Of Vendor Consolidation
When your Procurement Department figures out how to consolidate its vendors, you will discover how much more
effective your team can be. Not only that, you will be able to see how much money your organization can save.
Increased Purchasing Power
One of the main benefits of vendor consolidation s is increased buying power. When you cut down the number of
vendors your company deals with, it frees up more dollars to use with the remaining vendors.
This means you’re able to place order with a higher volume, which means your vendor will be more willing to
lower your pricing. This is something that can save your organization a lot of money in the long run.

7. Consolidation of vendors
Easier Vendor Management
Less vendors means less relationships to manage. Captain Obvious couldn’t have said it better himself. When you
manage less relationships, you can use the extra time to make your team more effective.
Managing tons of vendor relationships is one of the things that can make procurement difficult. By consolidating
vendors, you dramatically reduce the impact this problem can have. What’s great about this is the fact that your
team will have more time to spend on other important tasks and projects. Vendor management can help you
create a more productive team.
Lower Freight Costs
Vendor consolidation will also lower your freight costs. As you probably know, each supplier you work with has
their own freight costs. They charge a certain amount to transport the product to your offices.
This is another area where your company can save a lot of money. Less vendors means less money paid for freight
costs. Sometimes, this fact alone can make vendor consolidation worth it.

8. Consolidation of vendors
Better Relationships With Vendors
One of the drawbacks to having a large number of vendors is that it makes it more difficult to nurture profitable
vendor relationships. Managing that many relationships means that your organization isn’t able to invest as much
in each relationship.
Most procurement managers would agree that having better relationships with vendors is beneficial to the larger
organization. However, the more vendors you have, the harder it is to nurture these relationships.
When you lessen the amount of vendors that your company works with, it becomes easier to cultivate better
vendor relationships. Since your team won’t be occupied with juggling a lot of vendor relationships, they will have
more time to deepen the connection your company has with its suppliers.
Not only that, less vendors means more spending power. Since you’re now spending more money with your
chosen vendors, they will value your relationship even more.

9. Consolidation of
retailers

10. What is Retail Consolidation?
Retail Consolidation is an extension of aggregation that is done in chain stores to add up
all demands of various stores by a central purchasing office. It has a positive impact on
reducing the wasteful expense incurred due to Less Than Truck Load (LTL). Partial loads
on trucks increase avoidable expenses.
There are other obvious advantages of economy of scale, centralized data for business
analytics, etc

11. Initiatives Retail HR
1) Retail Strategy Diversification
Diversifying offerings allows retailers to find new profit lines and hedge their bets against business risk.
Diversification cannot only mean additions to in-store offerings, but also acquisitions to enter new markets or a
shift in the way the retailers reach their customers. Major retailers have successfully demonstrated diversified
offerings with seasonal pop-up shops, early-access member sales, online personal shopping, and in-store donut
kiosks
2) Manage Merger Integration
As e-commerce continues to strengthen brick-and-mortar companies are looking for growth opportunities through
industry consolidation. Mergers and acquisitions in retail will require a more thoughtful approach than in years’
past as retailers continue to feel pressure to grow revenue and profits while battling declining sales, store closures,
and bankruptcies. Major retailers have diversified through acquisition of online platforms to reach new audiences.
3) Understand And Adhere To Compliance Requirements
With changes to strategy, processes, and associated technology, retail organizations are being forced to revisit
compliance requirements and internal controls. This becomes increasingly important when the HR processes and
systems intersect with financials.

12. Initiatives Retail HR
4) Develop A Workforce Plan
The retail industry is being forced to move to more service-based, online business models. They require nimble and
efficient modeling/scenarios. It is critical for the HR function to build internal processes that allow for continuous,
on-the-fly improvements to the workforce model and the associated HR service delivery approach.
5) Manage Change
In order to facilitate dialog that will reach the entire organization, thoughtful planning and conversations around
alignment and readiness need to be had to support the shift in the business model and strategy. Once those
considerations are understood, the CHRO can manage change from a workforce perspective by designing a
strategy and executing on it.

13. Changing retail HR practices
Paperless hiring
With a high employee turnover rate, retail HR can create a never-ending blizzard of paperwork, as you probably
know all too well. Intake forms, training manuals, performance management docs…those add up for a large, and
likely ever-changing staff. Putting application systems online doesn’t just save you money on your file cabinet
budget.
Keeping applicant metrics all in one place also improves your hiring process, weeding out candidates with weak
skills and identifying strong potential applicants by comparing them to an existing pool of data. Automating
applicant review (even to a small extent) can also help minimize bias in the hiring process by adding blind review
steps.

14. Changing retail HR practices
Digital performance management
Digital performance management programs can consolidate all of that work (and information) in one place—
making it more efficient to manage employee data, and also giving you more actionable info in one place.
Having the process more automated and user-friendly also allows for more checkpoints between employees and
management, and gives real-time information about employee engagement, morale, etc. It used to be that
performance reviews and two-way feedback were rare in retail, but performance management platforms close
that gap and make the communication easier.
Daily employee engagement and feedback
Having a system for clocking employees in and out is hardly novel in retail, but having a digital platform for
employees to give feedback about their day, or pass along information for the next shift, is relatively new.Digital
tools give HR departments much more leeway in managing employees, and building stronger communication
between the sales floor and the corporate life backstage. Integrating systems and software into everyday
employee interactions increases efficiency, while also improving employee relations.

15. HR Challenges for Retail Industry
1. Employee Tracking
2. Manpower Planning As Per Infrastructure
3. Seasonal Demand
4. Lack Of Formal Education
5.Bad Loans
6.Women In Retailing
7.Analytics Overview

16. HR Challenges for Retail Industry
1. Employee Tracking
Most of the retailers have there store pan-India and have a lot of different store in a same geographical area so
tracking of employee productivity is a tedious task.
2. Manpower Planning As Per Infrastructure
Constant monitoring will help management to know where they are lacking manpower planning and can help to
train the employees to achieve the organizational objective.
3. Seasonal Demand
During the festival, there are always rush on retail stores.so employee demands are more and workforce needed
to be more organised during this time to handle this volume of customers.
4. Lack Of Formal Education
There is the requirement of qualified and talented manpower to look after the day to day operations and cater to
the wide spectrum of customer desires. As there is lack of formal vocational institutes where the employee can be
trained, most of the retailers in India depend on in-house training or fulfilling their training needs with small
institutes.

17. HR Challenges for Retail Industry
5.Bad Loans
Bad loans are the big problem in the retail sector as workers in this industry take a lot of loans from the company
and as well as from bank so proper tracking is required for maintaining the balance.
6.Women In Retailing
There are a lot of women in retailing and its also scientifically proven that women increase the productivity of
retail store if they are working properly as they have the ability to pursue people and they have genetical ability to
work with perfection and multitasking.
They can be easily trained and they can maintain a store more properly than men.
7.Analytics Overview
As there are the vast number of employees working in a single organisation Management level people rely only on
data that is shown in there databook or screen to address the problems some common problems may be
employee attendance, individual store productivity, retention of employees analyzing this data can figure out
problem area so that they can act on that before its too late.

18. Consolidation of
healthcare insurers

19. Healthcare insurers
Healthcare divided into two parts — health insurance (“payers”) and health services(“providers,”).
To remain profitable in a changing healthcare economy, both sides of the industry have been engaging in rapid
consolidation.
Both payers and providers are in a race to consolidate, growing their businesses through buying peer companies.
The impact on consumers, however, could be drastic and expensive.
Consolidation among the biggest names in the health insurance industry will mean greater economies of scale for
the insurance firms.
Indian Government proposed consolidation of 3 PSU Insurance company, National Insurance, United India and
Oriental Insurance which will decide the fate of 41,000 employees, 100,000 agents, 4.5 crore policyholders and
6,000 branches.
And if it is finalised it will be india’s first horizontal consolidation of Insurance industry.

20. Some Examples
A proposal of consolidation between Aetna and Humana and between Anthem and Cigna — though the
Department of Justice blocked the mergers on the grounds that they would violate antitrust laws and lead to
higher health care costs for Americans.
CVS’s proposed deal with Aetna has received the most attention. Both companies suggest that their partnership
will lead to greater convenience for patients and their covered populations and that it will lower health care prices
due to greater leverage in negotiations with drug manufacturers.
If the deal goes through, experts believe patients could end up paying more, not less. A company with such
leverage will make it challenging for new organizations offering insurance coverage to enter the market and
compete.
If the past is at all telling, further consolidation in the healthcare industry may portend serious issues regarding
health care costs and the quality of healthcare in the future.

21. Impact of Consolidation of healthcare insurers on
employees
Employers in these markets have more power over workers because they have fewer to turn to in terms of
competitors
The increased concentration that often results from consolidation creates opportunities for anticompetitive
behavior that hold down wages of workers
Depressing wages for employees of healthcare is one way to lower the growth rate in healthcare
Competitiveness and Fear of Job Loss

22. HR's role in consolidation
● Establish multiple routes of communication to employees (e.g., one-on-one meetings, group sessions,
newsletters, intranet updates).
● Ensure that employees understand there will be problems, but give a commitment that the problems will be
identified and addressed as early as possible.
● Help to define all aspect of combined organization including reward, change management, labor relations
and employee retention
● Solve different transaction issues involving culture, productivity, working environment, Hr policies, programs
and practices using selected HR system
● Maintain ongoing change management and employee communication

23. https://www.shrm.org/resourcesandtools/hr-
topics/benefits/pages/insurer-consolidation-impact.aspx
https://www.modernhealthcare.com/finance/health-system-
consolidation-may-be-holding-down-healthcare-employee-wages
https://thehealthcareblog.com/blog/2018/01/30/bigger-is-not-
always-better-how-consolidation-in-health-care-hurts-patients/
https://www.griffinbenefits.com/employeebenefitsblog/employ
ee-benefits-issues-in-mergers-and-acquisitions
https://blog.willis.com/2018/06/4-ways-the-hr-role-is-pivotal-
to-ma-success-part-4-in-a-series/
https://bakertilly.com/insights/the-top-10-initiatives-we-are-
hearing-from-retail-chros/
https://www.keka.com/10-hr-challenges-retail-sector/
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24. Thank You