Featured Customer
Retail Solutions enabled itself. The combination of its ease of use, a few early sizeable wins and the positive feedback from Food Lion about our results created the perfect environment for an easy roll out.
- Greg Pike
Customer Development
Kimberly Clark.
Retailer Program: Food Lion
Improving Promotion Effectiveness
Vendor Pulse Supplier of the Month:
January 2009
The issue:
In a promotion on multiple bath tissue products, run on in September 2008, Food Lion and Kimberly-Clark experienced an 18% out-of-stock rate significantly over their expectations, resulting in high lost sales.
In October, a similar event was scheduled to run – with both Kimberly-Clark and Food Lion looking forward to significantly improving the situation, reduce lost sales and increase lift.
Vendor Pulse data leveraged:
KC leveraged Food Lion Vendor Pulse data reporting to identify OOS episodes by store, item, and day for the September KC event.
Based on these out-of-stocks, the amount of under-allocation to stores during the promotion was quantified by item and by store.
Joint business process:
KC and Food Lion Category Management jointly reviewed the analysis and decided to increase force-out quantities by an average of 60% for a virtually identical promotion occurring the following month.
The outcome:
During the identical promotion period in October, sales increased by 63% vs. the September event. The out-of-stock rate was reduced by 41% from September to October.
Click here to read more about how Kimberly Clark uses Vendor Pulse.