Performance Improvement via Product rationalisation

As a result of the merger of 2 competing organisations, the product line offered to10 European subsidiaries contained several SKU’s that were now only viable in one or two markets and were attracting a disproportionate share of advertising and operations resource to maintain their market presence.

A review undertaken of the revenue/profit delivery on a European level of the entire product line revealed that an overall cut of 15% in product SKU’s would allow significant re-investment in more profitable lines, delivering an increase in revenue of 5% and an overall growth in contribution margin of 10%

           

Performance Improvement in Use of Support Resources

An organisation with several divisions operating in different parts of the UK also operated with separate retail merchandising and retail fixture formats, leading to significant duplication of effort in servicing the retail sector.

A plan was requested to provide a shared retail merchandising force, servicing the needs of all divisions in one retail call and also to minimise the number of format variants of the specialist fixtures provided to retail customers.

A proposal to reduce fixture format variants from over 250 to 65 was agreed as was the shared retail support team, resulting in annualised cost savings of over £300K in fixture costs and circa £1 million in retail support costs.