Distribution

Getting an edge in today’s competitive global environment requires more than offering the best price. Customer relationships must be optimized to add value and build loyalty. This was the challenge faced by a global electronics company when they turned to Videlity for assistance. Our client observed increasing competitive pressure that was driving down product margins. They needed to find an innovative way to add value to their customers to get a competitive edge.

In order to meet this challenge they decided to offer the best collaborative relationship of any of their competitors. By taking over replenishment of their customer’s inventory, including consignment, they reduced their customer’s trading costs 50% due to reduced inventory and improved service levels. They always have the right product at the right time because they always have visibility into their customer’s needs. Videlity’s client’s benefits were also significant. While reducing sales costs by 15% they optimized production planning and eliminated panic orders, expensive last minute shipments and extra transport. And they estimate a 2.5% increase in revenue with elimination of lost orders from out of stock situations.

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