OUr Work
CLIENT Success: IncreaSing Revenue Through Operations Optimization
Background: A building materials wholesaler needed to increase revenue for their point-of-purchase (POP) displays. They had a wide variety of POP displays and managing inventory and printing cost was extremely complex. The company’s revenue target for POP displays for the year was $5 million.
Challenge: The company faced several challenges. They had a large number of POP displays and on average ran about 100 promotions annually, which made it difficult for their sales team to effectively manage and promote each display. Additionally, the company did not have a formal inventory management process, resulting in high inventory costs and waste. Lastly, the SKU assortment of the POP displays was not tailored to the specific needs and preferences of their customers, leading to low sales and revenue on several displays.
Solution: To address these challenges, we implemented several optimization strategies. First, we consolidated their POP displays to a smaller number of high-performing displays, focusing on the most profitable and popular products. By reducing the number of displays, they were able to streamline their sales process and make it easier for their sales team to manage and promote the displays.
Second, they improved their process for managing inventory, reducing inventory costs and waste. They implemented a more efficient inventory management system that helped them track their inventory levels more effectively and avoid overstocking or understocking products.
Lastly, they tailored their SKU assortment to the specific needs and preferences of their customers. By analyzing their sales data and customer feedback, they were able to identify the most popular and profitable products and adjust their assortment accordingly.
Results: As a result of these optimization strategies, the building materials wholesaler was able to achieve 180% of their POP display revenue target for the year. Reducing inventory costs and waste were major contributors to the revenue growth.
Conclusion: By optimizing their operations through display consolidation, process improvement, and streamlined SKU assortment, we were able to significantly increase their revenue and achieve their goal. These strategies not only helped them improve their sales and profitability but also made it easier for their sales team to manage and promote their POP displays.