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. 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/ //economictimes.indiatimes.com/articleshow/63901793.cms?ut m_source=contentofinterest&utm_medium=text&utm_campaig n=cppst

24. Thank You