GAPs are products that are not available in our product range, but are in demand by the market. The discovery of gaps within product range management is fundamental for the growth and sustainability of a company. This process offers us several benefits: Improved operational efficiency. Improved customer service. Improved competitiveness against other competitors. Increased sales….
Lost sales are one of the biggest challenges for a company, as they represent lost business opportunities and affect both profitability (revenue) and customer service level (image). In a sector as competitive as the auto parts sector, every small improvement in sales efficiency translates into significant increases in revenue. These are the main reasons why…
Assortment planning determines the appropriate combination of products to offer customers and is a very powerful tool to obtain a competitive advantage, maximizing efficiency, profitability and sales. Some months ago, we saw in article Difference between optimizing stock and product assortment the difference between these to processes. In fact, most companies confuse the concept “stock” with…
Stock and product range optimization are very different processes but they are totally related and interdependent. Stock optimization or inventory optimization basically consists of adjusting the stock as much as possible without negatively affecting service levels and therefore achieving the ideal size. Product range optimization seeks to find an optimal set of products that the…
The auto parts distribution is more challenged than distributors realize and there is a performance indicator that is critical: ROI (return on investment). ROI has been an endemic problem to the auto parts distributors for years and it is a major reason for the many bankruptcies and liquidations among distributors. With costs and competition rising…
One of the main challenges to grow your business and meet the needs of your customers is to introduce new stock-keep-units (SKU) in your warehouse. It’s easy to turn cash into inventory but the challenge is to turn inventory back into cash! How do you quickly identify and react to changes in your customer purchasing…
