Case Studies

Problem:

The client had a review schedule that did not allow for quick action on trends affecting its customers. As a result, it gained a reputation for being slow to adapt to changing customer tastes. The legacy review strategy also led to a lack of a robust emerging/local assortment, which was important to the region's consumer base. Additionally, there were no variations in the assortment based on demographic differences between location groups.

Action:

We designed and implemented a Major/Minor Review schedule, as well as an A/B planogram strategy that allows the category management team to make organized adjustments to assortments throughout the year, without impacting their overall assortment strategy. By adjusting the review cadences, we were also able to streamline the local/emerging program, reducing the time it takes for these particular brands to get on the shelf in their local stores.

Result:

A true win-win-win outcome was achieved. Store-level customer satisfaction improved, vendor engagement and satisfaction with speed to market increased, and category management teams found it easier to manage their vendors and assortments. This was accomplished through a more defined review process that was easy to implement both internally and for vendors to comply with.

Problem:

The client was shipping to its customers and distributors from a single location. However, due to variable shipment sizes, costs were increasing, and on-time delivery was failing.

Action:

We analyzed the current and potential customer base and historical costs to determine where efficiencies could be improved. Based on this analysis, we created new selling regions with input from sales leaders, and sourced third-party logistics (3PL) firms that met the requirements of the client, its customers, and its long-term sales roadmap. After selecting the 3PL firms, we implemented the new model internally, and worked with the client's customers to quickly transition them to the new model.

Result:

The client achieved extensive cost reductions in shipping and warehousing and a significant increase in On-Time-In-Full (OTIF) performance that now meets industry standards. As OTIF levels increased and fines/fees were eliminated, additional cost reductions were realized. Moreover, the client can now increase inventory positions to accommodate seasonality and new one-time, high-volume events.

Problem:

The client had never required a forecasting tool or process before. However, as their scale grew, they found it increasingly difficult to keep up with demand due to ineffective forecasting. This put them at risk of losing current sales and turning away potential new business because they could not ensure they would be able to meet customer expectations.

Action:

At the request of the client, we built a forecasting tool in Excel to keep ongoing costs down after the engagement. The tool focused on item-customer-month level forecasts, and was built using existing customer data. Once the initial tool was built, we created two forecasting models that enabled sales leads to confidently forecast both their existing business (with promotions) and new business.

Result:

The client now has the data and forward-looking visibility to confidently source raw materials, plan production and warehousing, and bring on new business without the fear of running out of inventory. Additionally, a detailed SOP and training guide were provided for both the sales and operations teams, enabling them to continue leveraging the tool after the engagement.

Problem:

The client lacked real-time information on how the business was performing. The only available reporting was after month-end closes. This lack of visibility extended not only to the top-line performance of the company and its business units, but also to individual teams' ability to track their KPIs and contributions to the organization as a whole.

Action:

We obtained the necessary data from the client's internal systems and their syndicated partners to generate the required insights. We then constructed a cost-effective and easy-to-maintain data repository that could be connected to their BI tool. Finally, we developed a set of dashboards and reporting suites tailored to the needs of the executive team, business unit leaders, and individual teams, meeting each of their respective insight requirements.

Result:

The client and their teams no longer need weeks to process data and report on results after the fact. They can now make real-time decisions based on real-time data. Additionally, the client has a well-documented SOP and training guide on data sourcing that can be used by its administrative function instead of hiring more business intelligence staff.