CASE STUDY: BUILDING A NEW SUPPLY CHAIN

Improved service, increased sales
Collaborative thinking delivers results. In one recent case, it resulted in an increase of more than a million and a half dollars in annual sales of Welch’s products.



One of the largest food retailers in the United States, a long-standing Welch’s customer, is also a recognized national leader in category management and retail technology.

In 1998, we put our heads together and formed a multi-functional team to help the grocer achieve some key marketing initiatives, and to see how re-thinking the traditional supply chain could produce mutually beneficial results.

The team tackled a variety of issues, from consumer-based category planning, to efficient item assortment, to the problem of high shipping costs due to a shortage of available warehouse dock doors.

 

The results were impressive: the grocer netted a significant increase in annual sales of Welch’s products – up 18% from the previous year. Here’s how collaboration added value in two specific areas:

-Shelf Stable Concentrates

The team saw significant potential in this growing product area, and capitalized on it.

• In-store decision research study

• Concentrates productivity analysis

• Creative and efficient promotions

• Bilingual product labels

The result: more than three and a half million dollars in annual sales, an increase of 18% for the category from the previous year.

-Warehouse Deliveries
In this example, deliveries were a problem area. Drivers sometimes waited hours to dock at a warehouse door. These were costly delays. The team's solution established a system of standing appointments: drivers knew what time they had to arrive, and when they did, there was a dock door available. This simple change had a direct impact on controlling shipping costs.

We continue to innovate together. Today, this grocer no longer places product orders directly with us. Instead, they ship data to us every night from their warehouse locations. Welch’s coordinates that data and delivers product based on each day’s sales. It is a value-added service that grew out of their capabilities in retail technology, and Welch’s commitment to help a customer meet goals in item assortment and product rotation.

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