Background
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The clients, a logistic operator and a media company, have detected a high level of returns and stock-outs at the same time. |
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The challenge is to increase the efficiency per POS distribution in order to improve sales and reduce costs, given a certain number of units to be distributed. |
Valoris role
Valoris used a three-phases approach to meet the objectives:
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Centralisation and optimisation per POS distribution: |
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"Bottom-up" strategy (per POS) instead of “top-down” (per geographical area). |
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Develop per POS distribution algorithms based on its specific history of sales and profile. |
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Set-up tools to escalate and automatise models. |
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Definition and implementation of a returns redistribution process: |
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Develop algorithms to evaluate sales potential in POS with stock-outs. |
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Define and develop a process to centralise returns to be redistributed to POS with sales potential. |
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Definition and implementation of KPIs / Scorecard: |
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Business case of the expected economic impact for the publisher and the logistic operator. |
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KPIs definition and set-up of the objectives. |
Results
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Major increase in sales through collectible curve improvement with a reduction on returns, and as a consequence, the reduction of product costs. |
For more information about Valoris and its Media practice, please contact us. |
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