Case Studies
Case Study: New Operations for Global Promotional Products Company Reverses $9M Annual Worth Bleed
Overview
During a routine restructuring, a $600M global leader in promotional products measured the financial impact of return on its bottom line. It not only noticed that the overhaul was causing financial distress, but also that it lacked sufficient information to determine the extent of its problems. The company engaged Venetia Partners (VP) to audit existing processes and correct gaps.
Challenge
The suspected 2% annual reduction turned out to be a much bigger deficit. Its confirmed return rate was 3% higher than projected based on annual revenue. Inefficient tracking technology and process gaps and poor production were left unchecked for 7 years, and the company's annual worth reduction had reached 5%.
Outcome
While VP was brought in to correct one area, its overall operations and data analysis expertise added value across various areas of the business, identifying issues the company had been unable to recognize or quantify.
- Assessed existing returns process; instituted multifaceted continuous improvement plan
- Redesigned tracking through process and technology
- Trained all dept. leads to understand gaps and est. oversight
- Updated existing technology to handle more useful information
- Empowered leads to reduce returns in depts.
- Implemented in-depth reporting to track dollars, quantities & trends
