Background

The clients, a logistic operator and a media company, have detected a high level of returns and stock-outs at the same time.

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:

Centralisation and optimisation per POS distribution:

"Bottom-up" strategy (per POS) instead of “top-down” (per geographical area).

Develop per POS distribution algorithms based on its specific history of sales and profile.

Set-up tools to escalate and automatise models.

Definition and implementation of a returns redistribution process:

Develop algorithms to evaluate sales potential in POS with stock-outs.

Define and develop a process to centralise returns to be redistributed to POS with sales potential.

Definition and implementation of KPIs / Scorecard:

Business case of the expected economic impact for the publisher and the logistic operator.

KPIs definition and set-up of the objectives.

Results

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.