SEOUL, Korea, Feb 7 (Korea Bizwire) – GS Retail Co., the company operating convenience stores under the brand name of GS25, won a certification for having introduced the performance-sharing scheme from the state-run Large & Small Business Cooperation Foundation.
Under a performance-sharing scheme, a large corporation leads initiatives in product development, quality control, productivity enhancement, and cost cutting in cooperation with smaller partners and shares the fruit with each other.
The convenience store franchiser succeeded in the initiative by working closely with its suppliers of meals ready to eat (MREs), whose popularity has soared rapidly among young men and women on the back of the military-themed TV reality show “Real Men.”
With the latest certification as a momentum, GS Retail will increase the number of successful performance-sharing cases up to 100 by setting aside the budget to 4.3 billion won for the next two year. Small-sized suppliers will be able to benefit from the initiative by taking on larger, longer-term supply deals with the retail franchiser.
Kwon Ik-beom, executive at GS Retail, said, “Our win-win growth strategy is long term rather than one-time deal and consistent and intended to provide tangible support to small suppliers. Our company believes the performance-sharing scheme is one of the best ways for small business owners to grow side-by-side with larger partners.”