Case Study #1 – Beverage Industry
retail beverage superstore
Industry: Retail Beverage Superstore
Size: 160 locations
What happens when you have 160 locations that don’t share the same footprint? Each location has very specific signage needs, which creates significant over and under production for any piece of signage. In addition, this client was using Excel to produce more than 80 different components into 160 locations, which was extremely time consuming and inefficient. As a result, timelines were always rushed and additional costs were incurred to make up for lost time.
There was a great deal of difficulty keeping up with the wide variety of store formats and POS needs. And due to tight deadlines, the art files were being uploaded piecemeal, creating confusion as to what files were received and what was still required to produce the final displays. Adding to the confusion, the client did not use custom SKUs to identify POS, creating even more mistakes and confusion. Stores were receiving the wrong quantity and incorrect signage, and reships of POS were significant and costly, not to mention headache-inducing for everyone involved.
Instead of reaching for the nearest stiff drink, the PM Packaging Team got to work and identified a range of solutions to help make the process more cost-efficient and streamlined.
PM Packaging created and delivered an online Resource Center built specifically for the retail marketplace. Online merchandising allowed the client to quickly and easily create merchandising orders, resulting in a two-week reduction in planning times. The solution also included a store profiling tool that finds commonalities between store POS needs, resulting in an 80% reduction in over and under ships.
PM Packaging also created a Resource Center that all store managers can communicate and re-order as needed, directly from Packaging inventory, resulting in the reduction of two administrative positions focused on the re-ship and management process. And an online Art File Tracker eliminated the need to check if a file was uploaded or received, resulting in faster turn times and easier management of POS.
Finally, PM Packaging implemented an automatic SKU creator that produces clear descriptors for each POS item, resulting in less confusion and obsolescence due to error.
Reduction of administrative positions alone saved the company more than $120,000 annually. In addition, the client realized a 30% decrease in freight costs due to the elimination of expedited shipping; saving the client more than $50,000 annually. Finally, the client was able to save more than $100,000 annually by simply eliminating mistakes, overages, and obsolescence. That added up to a savings of more than $270,000 annually — I think we can all raise a glass to that!