This very interesting and (somehow) surprising AT Kearney Report suggests a new way to boost sales for low-volume items, applying a new way of thinking in assortment and replenishment. While in the situation when the items do no sell very well usually the reaction is to reduce assortment, the opposite approach – pushing the products into the stores in minimum quantities – has been shown to increase sales and reduce inventories without raising costs!

The approach suggested in this report implies a new way of assortment management, where people in the point of sales invest their energy in what they do best – merchandising and building costumer relationship – and the supply chain is managed in a pure centralized way.

In order to apply with success such a strategy the assortment and stock level of the point of sales has to be 100% managed by central Read the rest of this entry »