Supply chains are not usually structured, monitored or incentivised sufficiently to ensure product availability for end-customers, especially for slow-running assortments. Through simplified and counter-intuitive principles of assortment management and replenishment, supply chains can be tailored to maximise availability and enable top-line improvements.
Our Customer Integration principles aim to develop a distinctive point of view on sales-related aspects of operations, starting with shelf availability.
Over the last four years A.T. Kearney has developed and successfully implemented an innovative value proposition - shelf availability - aiming at generating incremental sales through a radically different management of supply chain variables (assortment and quantities per point of sales). Our approach combines four key levers:
- Better-tuned replenishment quantities
- Wider Point of Sales assortment
- New calculation principles
- Specialised and accountable teams
Throughout the countries where this approach has already been deployed, we have continuously shown that we can generate incremental sales across the entire portfolio of over 5%, whether applied to direct or indirect channels. Our experience shows that we can deliver sustainable results in this range with no sales cannibalisation, no increased costs, no inventory increases and with less manpower.
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