Benchmarks & Client Cases
Final Products References
• High dispersion of sales
• 11% of products account for 80% of sales
• Too many options to set up the product: 246 model types x 196 finishing options
• Lack of knowledge of product range amongst sales team members
• Long Lead Time for product development (with similar choices available)
• Low hit rate
• High levels of raw material stock
• Variety Reduction Program: rationalization of the product range
• Raw materials references review
• Negotiation with suppliers improvement
• New Costing and Budgeting Method
• Definition of new standards for replenishment and sales guidebook
• Awareness of different markets and projects margin
The project resulted in annual savings of $1.25 million and release $1.5 million of Free Cash-Flow in the first year.
Margin for A-Products
Stock (Value k$)
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