DRC Solutions

We realize we have duplication in our merchandise assortment and some skus are performing worse than others. What should we do to maximize our assortment for our customers ?

We can help you ! We can offer a thorough analysis of each category and sku to determine profitability, financial contribution and category importance,while tying the assortment decisions together. As a team we will review our decisions so as not to make any rash decisions and remove or add any items that could not be easily substituted by another product expansion or deletion.

Our customers are often dissatisfied because they are unable to purchase their desired products when they want them which results in lost sales, lost margin and a potential loss of future customers.

DRC Solutions studies store, buying and warehouse processes. We identify the root causes of the out of stock situation and develop initiatives to improve ordering and shelf recovery. We then if needed pilot the initiatives in a group of test stores to understand impact and adjust as needed. In addition, we can create a process for capturing and reporting Out of Stock (OOS) items and percentages by store, by region and for the total company so that we can measure improvement. This effort results in an OOS reduction, an increase in gross profit and in sales.

We have too much inventory and lack the cash flow to support the current needs of our other business initiatives.

DRC Solutions will evaluate your merchandising operations processes and/or systems and identify areas of opportunity. We can establish a sales and inventory planning process including the initial buy. This will always start with your customers’ through replenishment, the final markdown and then clearance strategy. This will open inventory dollars which then can be allocated to new products at a higher profit margin. This also will align your category initiatives and provide the customers with additional offerings to meet their needs. We can also design a merchandise hierarchy that enables sales analysis and reporting aligned with customer shopping behaviors. Your merchandising team will be trained to utilize and optimize the new processes.

I don't have the time or know how to analyze what I am selling down to the detail necessary to make meaningful decisions. I know by not taking the time to do the analysis this could lead into inventory overages and increased markdowns decreasing my overall profitability.

As time consuming and overwhelming as it may seem we can help you set up your Key Performance Indicators to best measure your business. We can also put together an overview via excel or recommend software that enables you to analyze your operation, identify problem areas and take immediate action before non action can hurt your profitability but most importantly your customers.

I am launching a new product line extension to increase my top line revenue, but I am not sure on the initial buy quantities, how much to allocate to my stores and how much inventory to hold in my distribution centers.

DRC Solutions always starts with your customer while establishing basic but dynamic inventory models based on product lead times, minimum shelf stock requirements, inventory turn projections and marketing initiatives. This will lead to a very successful launch promotion and a consistent in stock level for the future weeks and months following the launch. This program can then be put in place and utilized for all future line extensions, new products and promotional activities.

We have highly skilled and talented employees; however, we are not always optimizing their work. They are often duplicating efforts and not working most efficiently due to conflicting direction and changing business priorities. Our organizational structure does not always allow the work they do to focus on meeting the customers’ needs.

Applying a customer focused approach to your operations will enable you to design processes that are most efficient and best meet the customers’ needs. It is also important that your organizational structure be designed based upon the best way to serve your customers. We will apply Toyota Production System concepts, beginning with a clear understanding of the problem, a study of the current state and potential root causes, and a description of the desired outcome, and then define how to get there. We will also evaluate your organizational structures and ensure that our plan is designed to align with your value proposition including clearly defined roles and responsibilities to meet the customers’ needs.