Case Studies

Strategic growth

May I Have this Dance?
Organic growth is typically viewed as a safer bet than growth through acquisitions. The parameters are well understood; the competitive landscape, the products being offered, price points, barriers and how one measures success. But frequently, rapid growth is a necessity.. Read more

 

In the Hot Box
Managing Sales & Inventory

Inventory sales management

Distribution businesses are often forced by manufactures to expand service levels and territorial coverage. At the same time, competitors are fighting for products and territories. While the sales increase is always intriguing, the cost of service and increased investment in inventory can often stress profitability if not managed properly. Being squeezed by vendors on one side and competitors on the other side can make it difficult to safely get on base.

This $100M distribution business operating in 10 states found that the competitive landscape was changing. The market was demanding faster logistics service while squeezing margins necessary to support the new levels of service. The company was experiencing an explosion in SKU counts while inventory age and turns continued to decline. Key suppliers reacted to the market place changes by forcing geographic sales territory expansion in order to gain market share.

Our team worked with the client’s top three suppliers to improve sales performance and reshape distribution territories. We pushed back on geographic expansions until market research confirmed viability of such expansion, then worked with the manufacturers to improve effectiveness of sales activities in each territory.

Genoa worked with our client to install disciplines in the breadth and depth of inventory coverage to serve their customers. Managing the natural conflict between inventory turns and customer fill rates is a challenge for any distribution business. Our team installed inventory management parameters to address this conflict and increase turns while maintaining fill rates.

Genoa restructured the management team and reorganized by territories. We developed and implemented KPM’s (Key Performance Metrics) for each region to align activities with the overall corporate strategy. Progress was monitored according to the metrics that were established and we were able to measure the steady improvements and their impact on profitable growth.