A UAE based outlet of a global furniture retailer found reducing footfall, squeezing industry leading margins. The challenge was to maintain or improve net contribution despite lower sales volumes.
As part of a Lean Academy, Revive facilitated a comprehensive review of the existing stock management processes identifying significant cash and operating costs tied up in aging stock. Under careful guidance of one of our senior Black Belt consultants, the Green Belt determined a lack of control as the root cause, and implemented multiple, effective solutions to drive aging stock to sale.
The client realized a reduction of 80% in aged stock in less than 3 months, which in turn led to reduced warehousing costs, increased profitability by reducing markdowns of over $1m and an early warning system preventing the future purchasing of low profit items.