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CASE STUDY- Retail Audits Increase Sales
BACKGROUND:
A Fortune 500 consumer products company tracking retailers’ “No Sales” reports” is alarmed by the rate of high velocity items with recurring “No Sales” results during peak selling periods. A broker services their brands periodically, but the “No Sale” trends are not improving.
Since the Company offers as many as 500 sku’s in large stores it is almost impossible to target the Broker’s activity toward repetitive “No Sale” sku’s. Furthermore, the Company cannot identify if the problem is invalid inventory data, actual out of stocks, missing reorder labels, etc
ARCHWAY SOLUTION:
Archway’s IT group implemented a seamless transfer of the retailers’ “No Sale” data into the e-merchandising system. Merchandisers received an electronic list of “No Sale” sku’s specific to each store. Archway merchandisers then executed an Audit and Correct program reporting on the source of the problem, and taking appropriate action to eliminate the systemic causes of the out of stock problem.
During the audit phase Archway identified two problems not originally suspected.
In some cases, managers temporarily turned items off in the system, but forgot to turn them back on. In others, some sku’s were authorized but not required. On the following call Archway merchandisers took a one-page sell sheet to encourage department heads to order the missing item.
RESULTS:
Archway assisted the Company in reducing the No Sale list by almost 80%. Currently, Archway completes an audit and correct once a month.
In addition, Archway’s eReporting system now tracks repetitive put of stock by store number and is assisting in changing the model inventory levels for those sku’s.
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