Nail down your assortment strategy
When it comes to building products, customers expect suppliers to be able to provide anything and everything at a moment’s notice. In response to this demand, many businesses in the building industry have exploded their assortment strategy to encompass many thousands of different SKUs. The problem is, however, how much do you really know about the items within the assortment?
Do you know which items offer the greatest return or which are most important to your customers? Equally, do you know which items are costing you money?
While offering literally millions of different products undoubtedly provides customers with plenty of choice, keeping up with these exploding ranges can prove a constant battle. After all, it’s no secret that, typically, 80% of a business's turnover is generated by just 20% of the assortment. Consequently, by holding such large assortments, many businesses may be unnecessarily investing a huge amount of resources into items that offer limited value to the business or the customer: all to the determinant of items that really matter! In order to ensure that assortment decisions are made inline with both the expectations of the customer as well as the demands of the wider business, businesses must ensure that the assortment strategy is a clear reflection of the businesses goals as well as the expectations of the customer.
With this in mind, what can businesses do to maximise the value of their assortment strategy without compromising their ability to meet the needs of their customers? How could redefining your approach to assortment management help improve the performance of your organisation?
As part of our “building blocks to a better supply chain” series, we have put together a toolkit to help you refine your approach to inventory management.
Complete the form below to download our simple guide to better assortment management!