hsm spr cat rationalization review
TRANSCRIPT
SP Richards
SP Richards
2012 Category Rationalization Review
SP Richards
Presented To: David Tapia Kimberly DuMont
SP Richards
AgendaSP Richards
• Current Category Challenges
• Current Market Dynamics
• Category Rationalization “Best Practices”
• HSM’s Approach to “Best Practices” Methodology & Approach
• The Process
Customer Analytics
Category Segmentation Product Class & Sub Class
Quantifying The Impact
• Customer Analytics Review
• Product Class & Sub Class Review & Recommendations
• Overall Impact Summary
• Marketing & Catalog Management
• Next Steps
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Current Category ChallengesSP Richards
•Too many options especially at the low end with limited differentiation.
•This is leading to cannibalization and an inability to maximize inventory investment
Over Assorted•Program
s have been largely driven by back end monies resulting in degrading net profitability especially on items where the market will not hold higher MSRP’s
List Cost Price Compression
•Category lacks any meaningful segmentation of products structured around product classifications and a “Good, Better Best” Strategy.
Product Segmentation
•Due to the need to meet the market demand and balance that against inventory investments, the offering readily available to end consumers is somewhat limited.
Limited Offering at the Professional
Level
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Current Market DynamicsSP Richards
40% Compression
of the Outsourced
Shred Service Industry
Increased Awareness of the
Value of Recyclable Waste
30% Increase Year over Year in Second &
Third Generation
Buyers
Higher
Qual
ity
Higher Capacity
Recycling Solutions
HSM can provide solutions that will unlock the entire market potential
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Category RationalizationBest Practices - Critical Elements
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• Lifecycle Management- Process should incorporate an overall Lifecycle management approach.
• Meet Consumer Demand- Solution must be able to continue to meet consumer demand accross all segements of product.
• Minimize Canabilization – Rationalization should be constructed in such a way as to avoid canbilization.
• On Going Product Availability- Chosen suppliers should be able to have a demostrated ability to provide on going availabity to all products.
• Inventory Reduction- Process should incorporate a demonstrated way through which inventory savings can be realized through both sku reduction & migration of certain slow moving items to a virual drop ship enviroment.
• Market Share & Profitability Gains- Program should be constructed in such a ways to provide demonstrated uplift to both market share and net profitabilty.
Source Data: “Best Practices in Sku Rationalization” Aldata Corporation
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Category RationalizationHSM’s Approach to The Critical Elements
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• Lifecycle Management- On going trend analysis and customer analytics support.
• Meet Consumer Demand- A comprehensive product offering covering all product catergory segements.
• Minimize Canabilization – Proven rationalization methodology inclusive of product calssifications and sub classes designed to segement product in a meanigful way to avoid caniablization.
• On Going Product Availability- Signficant manufacturing depth and expertise with fully verticaly intergrated manfacturing within 3 owned plants in Germany and 2 JV manufacting plants in China.
• Inventory Reduction- Comprehesive Virtual Warehouse drop ship program through which additional market share gains can be realized with zero inventory investment.
• Market Share & Profitability Gains- Our strong MSRP‘s and our avoidance of large back end loading will maximize the net profitabilty accross our entire product portfolio.
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Category RationalizationMethodology & Goals
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“Getting There- The HSM Catregory Rationalization approach was developed by compiling and analyzing data on all available products, end consumer buying behaviors, and existing product segementation methodoligies reulting in a focused approach towards catergory rationalization that incoprorates all of todays well known “Best Practices“, and provides the platform through which on going cost operational reduction, enhanced profitability and sales goals can be acheived and quantified.
The ProcessCustomer Analytics
•Provides benchmark Vs the overall market by Unit.
•Measure product Lifecycles
• Determines key areas for opportunity and change.
Product
Analysis
•Identifies GAPS
•Uncovers areas for up sell opportunities.
•Aids in managing price progression.
• Allows for product classifications and segmentation.
Impact & Assessment
•Quantifies impact based on all known factors.
• Provides the customer with a calculator to estimate overall impact
On Going Management
•Product Lifecycle management.
•New product introductions.
•Quarterly Business Review Process
SP RichardsCategory RationalizationQuantifying Impact
SP Richards
New Item Adds“Incremental Sales”
Up Sell Opportunities“Migrating Demand”
Inventory Impact
The FormulaMeasure used: % of item to total HSM Sales
Calculation: % to total sales X customers total sales =___Net Impact to sales in %
Sales & margin be calculated by the customer using the supplied calculator.
The FormulaMeasure used: list price compare
Calculation: List price of up sell item - List price of deleted item Net Impact in % to sales
Sales & margin can be calculated by the customer using the supplied calculator.
The FormulaMeasure used: Total category increase or decrease
Calculation: Starting number of sku’s - Ending number of sku’s____Net Impact in %
Overall impact can be calculated by the customer using the supplied calculator.
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Category RationalizationCustomer Analytics – Performance by Sku Vs Market
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Model MachinesHSM 2009 vs 2010 Trend
HSM 12 month Rolling Unit sales %
SPR Percentage HSM unit
sales
Comparison
P36 4,5x30 200.00% 0.03% 0.15% 0.12%225.2 1x5MM OILER 173.45% 0.32% 0.30% -0.02%125.2 5.8 130.48% 1.62% 0.28% -1.34%B32 4,5x30 100.00% 0.32% 0.86% 0.54%390.3 5,8 82.02% 0.36% 0.26% -0.10%125.2 1x5mm OILER 74.64% 2.89% 0.88% -2.01%108C 3,9x30 36.28% 1.25% 0.77% -0.48%B24 5,8 34.26% 0.22% 0.11% -0.11%225.2 5.8 29.00% 0.36% 0.11% -0.25%108.2 5,8 25.49% 1.32% 1.14% -0.18%Shredstar X18 4x27 21.10% 11.22% 14.37% 3.15%225.2 3,9x40 20.56% 1.26% 0.39% -0.87%Shredstar X5 4x36 13.44% 7.05% 70.64% 63.58%104.3 5,8 2.53% 0.64% 1.59% 0.95%B24 4,5x30 -9.40% 0.16% 0.32% 0.16%390.3 3.9x40mm -10.94% 1.08% 0.69% -0.39%125.2 3,9x30 -11.44% 0.85% 0.30% -0.55%412C 3,9x50 -14.81% 0.03% 0.34% 0.30%104 3,9x30 -16.10% 1.90% 1.70% -0.20%Shredstar Mutlishred -33.39% 1.66% 4.37% 2.71%105.3 3,9x30 -36.23% 0.26% 0.21% -0.06%B34 5,8 -39.81% 0.03% 0.24% 0.21%
TOTALS 100.00%
HSM-SPR Unit Sales Analysis
Model MachinesHSM 2009 vs 2010 Trend
HSM 12 month
Rolling % Dollar sales
SPR Percentage HSM Dollar
sales
Comparison
P36 4,5x30 202.08% 0.25% 2.80% 2.55%125.2 5.8 130.24% 3.41% 1.39% -2.02%B32 4,5x30 100.00% 0.94% 4.62% 3.68%390.3 5,8 94.91% 1.74% 2.53% 0.79%125.2 1x5mm OILER 75.28% 11.86% 10.33% -1.53%225.2 1x5MM OILER 59.15% 4.46% 5.25% 0.79%B24 5,8 38.35% 0.43% 0.39% -0.03%Shredstar X5 4x36 32.72% 1.08% 18.63% 17.55%225.2 5.8 32.01% 1.29% 0.85% -0.45%108C 3,9x30 26.93% 2.27% 2.89% 0.62%Shredstar X18 4x27 25.72% 5.50% 13.03% 7.53%225.2 3,9x40 22.85% 5.03% 3.59% -1.44%108.2 5,8 22.32% 1.89% 3.33% 1.44%104.3 5,8 -1.57% 0.69% 3.57% 2.89%390.3 3.9x40mm -7.89% 6.04% 7.61% 1.57%B24 4,5x30 -10.48% 0.43% 1.55% 1.12%104 3,9x30 -15.91% 2.51% 4.98% 2.46%125.2 3,9x30 -17.97% 2.30% 1.71% -0.59%412C 3,9x50 -24.81% 0.36% 6.79% 6.43%Shredstar Mutlishred -32.42% 0.38% 2.06% 1.68%105.3 3,9x30 -37.65% 0.38% 0.59% 0.20%B34 5,8 -47.13% 0.12% 1.54% 1.41%
TOTALS 100.00%
HSM-SPR Dollar Sales Analysis
= Key area of opportunity
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Category RationalizationCustomer Analytics – Performance of Recommended Items
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Model MachinesHSM 2009 vs 2010 Trend
HSM 12 month Rolling Unit sales %
SPR Percentage unit sales
Comparison Model MachinesHSM 2009 vs 2010 Trend
HSM 12 month
Rolling % Dollar sales
SPR Percentage unit sales
Comparison
Shredstar S10 NEW 0.72% Shredstar S10 NEW 0.12%C8A0 NEW 0.30% C8A0 NEW 0.13%C680 NEW 0.26% C680 NEW 0.09%BS25S NEW 0.39% BS25S NEW 0.19%B32 3.9 1075.00% 0.21% B32 3.9 813.10% 0.49%386.2 3,9 112.70% 0.10% 386.2 3,9 141.81% 0.35%386.2 3,9x30 91.40% 0.27% 386.2 3,9x30 91.80% 1.06%B34 4,5x30 -16.94% 0.11% B34 4,5x30 -7.98% 0.91%P40 NEW 0.02% P40 NEW 0.01%P40C NEW 0.01% P40C NEW 0.01%P44 NEW 0.01% P44 NEW 0.01%P44C NEW 0.01% P44C NEW 0.01%B24L6 NEW 0.24% B24L6 NEW 0.70%B34L6 NEW 0.10% B34L6 NEW 0.02%P36S NEW 0.01% P36S NEW 0.01%P36 L6 NEW 0.01% P36 L6 NEW 0.30%P36L6OMDD 1.00% 0.50% P36L6OMDD 1.05% 1.05%
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Category RationalizationProduct Class & Sub Class Creation
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Classificatiion Guide Priority 1 Priority 2 Priority 3 Priority 4Color Code Class Sub Class Users SECURITY LEVEL CUT TYPE SHEET CAP RUN TIME GALLON CAP
1-2 S SH CAP <183 CC SH CAP <13
4-5 MC SH CAP <101-2 S SH CAP >183 CC SH CAP >14
4-5 MC SH CAP >111-2 S SH CAP >193 CC SH CAP >14
4-5 MC SH CAP <141-2 S SH CAP <393 CC SH CAP >20
4-5 MC SH CAP >151-2 S SH CAP >403 CC SH CAP >30
4-5 MC SH CAP >16Deskside 1-2 SH CAP <7 G CAP <7
Small Office 1-3 SH CAP <7 G CAP <9Office 1-6 SH CAP <15 G CAP >10
Large Office 6-11 SH CAP <15 G CAP >20Departmental 12 Plus SH CAP >15 G CAP >28
ShredderShredder-Baler
If a shredder's specifications fits into 4 out of 4 priorities it is placed into that class/sub class. 3 out 4 priorities must be met when placing a unit into a Class/sub class
run time <10 min G CAP <7
run time >11 min G CAP <9
G CAP >10
G CAP >20
G CAP >28
NA
Continuous Duty
Continuous Duty
Continuous Duty
Continuous Duty
Continuous Duty100 PlusAll12 Plus 1-4
6 HS
6 HS
Deskside
Small Office
Office
Large Office
Departmental
Personal
Personal
Multi-User
Multi-User
Multi-User
Personal HS
Multi-User HS
Mulit-User IND
1-2
1-3
1-6
6-11
12 Plus
Buying GuideGroup FeaturesGood Stacked Built cutting system and/or duty cycle less than or equal to 10 minBetter Stacked or Solid Steel cutting system with limited duty cycle above 10 MinBest Solid steel cutting system with continuous duty motors and full TAA compliance HS HS High Security – same features as best category and are EPL listed by the NSAIndustrial Industrial-large capacity, Continuous Duty with recycling ablilities
(to be replaced with buying guide page)
SP RichardsCategory Rationalization RecommendationsPersonal Desk side Product Class
SP Richards
SPRPersonal Deskside
Mfg Part Number Model Cut Type Sheets Cycle Waste Bin Price Group Impact & BenefitStrip Cut
Add HSM S10 s 10 5 4.3 $142 Good
Will provide increased catergory sales of approx .12% by adding a entry level price point. Impact estimate based upon currnet HSM sales trends as a % to current total sales.
GBC SWI 1757250 s 12 2 5.5 $169 Good Cross Cut Good
HSM HSM 1004 X5 c 7 10 3.6 $96 Good Fellowes Fel 3224905 P-48C c 8 5 4.75 $135 Good
Delete GBC SWI 1758581 c 7 2 3.2 $149 Good Migrate demand to $155 price point same specs resulting in a 4% pick up in top line revenue based on list price.
CCS CCS 60062 60062 c 8 6 3.2 $155 Good Delete Fellowes FEL 3225901 P-58Cs c 9 5 5 $163 Good
Delete Fellowes FEL 3205001 DS-2 c 8 4 4.8 $170 Good
Add HSM C8AO c 10 5 6.6 $170Good
Fellowes FEL 3028002 HD-10Cs c 10 8 5 $185 Good HSM HSM 1001 c 8 10 1 $188 Good
Fellowes FEL 3271301 PS-12Cs c 12 5 4 $230 Good
Delete CCS CCS 60061 60061 c 8 12 4 $230 Good
Fellowes FEL 3011001 DS-1 c 11 5 4.75 $270 Good Delete GBC SWI 1757392 c 10 4 6.5 $349 Good
GBC SWI 1757390 c 12 3 5 $350Good
Micro Cut Good
Add HSM C680 Micro 7 5 6.6 $180 Good Will provide increased catergory sales of approx .09% by adding an entry level price point for the Micro cut buyer.
CCS CCS 60075 60075 Micro 6 6 4.2 $379 Good GBC SWI 1757395 Micro 7 4 8 $399 Good
Delete Fellowes FEL 3240501 MS-460Ci Micro 7 10 4.8 $420 Good
CCS CCS 60076 60076 Micro 10 10 8.6 $518 Good
Migrate demand from P58CS & DS-2 provides to the C8AO the consumer with higher sheet capacity & same run time. Impact on top line sales is approx. 2% assuming 50% of demand is presently split between both sku's. C8A0 is presntley .13% of total HSM sales and 0.30% of total units.
Migrate demand to PS12Cs higher sheet capacity will provide the ability to capture larger share of 12 sheet buyer market while reducing inventory carrying costs.
Consolidate demand into the 12 sheet Swingline model very similar specs will provide the consumer with added value while reducing inventory requirements.
Migrate demand to the CC60076 and create better price separation while increasing top line sales by approx 23% over the MS460CI
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Category RationalizationClass & Sub Class Recommendations ImpactPersonal Desk side
SP Richards
Inventory Impact
Net impact of adopting all changes will result in a 16.67% reduction in overall sku’s within the product class. Total sku reduction is 3 items.
Sales & Impact
Up Sell - Sales increases at the sku level will be between 4%- 23% based migrating demand to the next closest price point with similar specs.
New Item Adds- 0.34% pick up in overall shredder sales based on HSM‘s trends for these models as a % to overall sales.
Margin Impact
Increased margins and higher average order sizes will be achieved based upon demand migration to slightly higher price points.
SP RichardsCategory Rationalization RecommendationsPersonal Small Office Product Class
SP Richards
Personal Small OfficeMfg Part Number Model Cut Type Sheets Cycle Waste Bin Price Group Impact & Benefit
Strip Cut
Add HSM BS25S s 25 6 7.1 $369 Good
Balances the sub class by providing Good, better, Best Segmentation while providing the platform for increased market share due to the lower enetry level price point. Item is presently 019% of total HSM sales and 0.39% of total units
Fellowes FEL 3238301 SB-83i s 18 20 7 $440 BetterHSM 1043 s 24 Continuous 8.7 $757 Best
Cross CutHSM BS12015 c 15 15 7.1 $319 BetterHSM X18 c 18 10 7 $375 BetterHSM BS820A c 16 20 7.1 $465 BetterGBC SWI 1757571 c 100 10 8 $499 GoodCCS CCS 60060 60060 c 30 25 8 $499 Better
HSM BS820B c 17 20 7.1 $499 BetterHSM 1043cc c 14 Continuous 8.7 $998 BestHSM 1053CC c 14 Continuous 8.7 $1,188 BestHSM B24C c 19 Continuous 9 $1,494 Best
Micro CutGBC SWI 1758496 Micro 12 4 8 $659 Good
SP Richards
Category RationalizationClass & Sub Class Recommendations ImpactPersonal Small Office
SP Richards
Inventory Impact
Net impact of adopting all changes will result in an increase of 8.3% or 1 sku. The carrying costs for these additional will be offset by the anticipated sales pick up associated with these items.
Sales & Impact
Up Sell- None identified for this product class
New item Adds- 0.19% pick up in overall shredder sales based on HSM‘s trends for these models as a % to overall sales.
Margin Impact
Margin should remain neutral or have a slight pick up based on the addition of the BS25S
SP RichardsCategory Rationalization RecommendationsMulti User Office Product Class
SP Richards
Mfg Part Number Model Cut Type Sheets Cycle Waste Bin Price Group Impact & BenefitStrip Cut
HSM 1082 s 24 Continuous 13 $1,009 Bestadd HSM B32S s 24 Continuous 21.7 $1,492 Best
Delete Fellowes FEL 3440501 2127s s 21 Continuous 26 $1,799 Best
HSM 1252 s 30 Continuous 20 $1,861 BestFellowes FEL 3830001 C-325i s 24 Continuous 22 $1,999 Better
Add HSM 386.2 s 24 Continuous 31 $2,352 Best
Will drive incremental sales and have a positive impact on average order size Units is presently 0.35% of HSM total sales and .10% of total units.
Cross CutGBC SWI 1758585 c 18 Continuous 13 $949 BetterGBC SWI 1758605 c 20 Continuous 19 $1,249 Better
Delete HSM 1082cc c 14 Continuous 13 $1,262 Best
HSM B32C c 19 Continuous 21.7 $1,722 BestDelete Fellowes FEL 340101 2127C c 14 Continuous 26 $2,099 Best
HSM 1252cc c 18 Continuous 20 $2,175 BestFellowes FEL 3831001 C-325Ci c 22 Continuous 22 $2,299 BetterFellowes FEL 38385 C-385C c 16 Continuous 31.6 $2,499 Better
Add HSM 386.2cc c 18 Continuous 31 $2,876 Best
GBC LX19-42 c 19 Continuous 42 $3,050 BetterMicro Cut
GBC SWI 1770070 mc 11 Continuous 13 $1,579 BetterHSM B32CL4 mc 13 Continuous 21.7 $1,899 Best
Fellowes FEL 3440901 2127M mc 12 Continuous 16 $2,399 BestGBC SWI 1770065 mc 9 Continuous 30 $4,075 Better
Multi Use Office
Migrate demand to the HSM 1252 higher sheet capacity better value for the consumer. Impact on top line sales of approx. 3.45%
Migrate demand to the HSM B32 creating better price separation in this class and increasing top line by approx. 36.45% Market share increase of .05 % based on current HSM sales trends
Migrate demand to HSM 1252 provides added value to the consumer due to higher sheet capacity impact to top line revenue 3.62% on current demand.
Will provide the platform for up sell opportunities to a "Best" product in this class with a corresponding impact of approx. 15.09 % to top line revenue by migrating demand from the C385C. Incremental Sales impact will be 1.06% of total shredder sales based on the HSM internal sales as a % to total sales.
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Category RationalizationClass & Sub Class Recommendations ImpactMulti User Office
SP Richards
Inventory Impact
Net impact of adopting all changes will result 0% change to total sku count.
Sales & Impact
Up Sell- Sales increases at the sku level will be between 3.45%- 36% based migrating demand to the next closest price point with similar specs.
New Item Adds- 1.46% pick up in overall shredder sales based on HSM‘s trends for these models as a % to overall sales.
Margin Impact
Margin will remain constant as a % but overall margin dollars will increase based on the migration to higher priced items.
SP RichardsCategory Rationalization RecommendationsMulti User Large Office Product Class
SP Richards
Mfg Part Number Model Cut Type Sheets Cycle Waste Bin Price Group Impact & BenefitStrip Cut
HSM B34S s 26 Continuous 26.4 $2,265 Best
Delete Fellowes FEL 38380 C-385 s 28 Continuous 31.6 $2,299 Better
Fellowes FEL 3404001 2331s s 30 Continuous 32 $3,449 Best
Add HSM P36S s 39 Continuous 38.3 $5,355 Best
Incremental sales impact based on current HSM numbers is .01%. Since this is a brand new item full sales impact cannot be calculated at this time.
Cross CutGBC SWI 1770045 c 20 Continuous 30 $2,449 Better
Add HSM B34C c 22 Continuous 26.4 $2,574 BestIncremental sales impact of approx 0.91% based on current HSM trends as a % to sales.
HSM 2252cc c 27 Continuous 28 $3,121 BestFellowes FEL 3403901 2331c c 25 Continuous 32 $3,799 Best
HSM 3903cc c 27 Continuous 39 $4,162 BestGBC SWI 1758583 c 30 Continuous 55 $4,375 Better
Multi User Large Office
By migrating demand to the B34S you will provide a "Green" product solution in the category based on the Energy Management system which should result in increase share within this group and normalize your offering with that of your primary competitor. Sales & margin omact should be flat.
SP Richards
Category RationalizationClass & Sub Class Recommendations ImpactMulti User Large Office
SP Richards
Inventory Impact
Net impact of adopting all changes will result in a 12.5% increase or 2 sku’s.
Sales & Impact
Up Sell- None identified for this product class
New item Adds- 1.41% pick up in overall shredder sales based on HSM‘s trends for these models as a % to overall sales.
Margin Impact
Margin will remain constant as a % but overall margin dollars will increase based on new item sales.
SP RichardsCategory Rationalization RecommendationsMulti Departmental Product Class
SP Richards
Multi DepartmentalMfg Part Number Model Cut Type Sheets Cycle Waste Bin Price Group Impact & Benefit
Strip CutHSM 2252 s 42 Continuous 28 $2,768 BestHSM 3903 s 42 Continuous 39 $3,567 Best
Add (virtual) HSM P40S s 60 Continuous 40 $5,888 Best
Add (virtual) HSM P44S s 78 Continuous 55 $6,999 BestCross Cut
HSM HSM1853 P36C c 31 Continuous 38.3 $6,399 BestAdd (virtual) HSM P40C c 37 Continuous 40 $7,299 Best
HSM HSM 4112cc c 40 Continuous 38.5 $7,373 BestAdd (virtual) HSM P44C c 46 Continuous 55 $8,599 Best
By adding the P40 & P44 Series you will extend the price range of this product class and will be positioned to provide high the highest available sheet capacities available addressing the transitional needs of small business moving from the outsourced shred service environment. By adding this in a virtual drop shop program will mean no impact to current inventory and valuable sales data can be gained from which a s future stocking position can be determined.
SP Richards
Category RationalizationClass & Sub Class Recommendations ImpactMulti Departmental
SP Richards
Inventory Impact
Net impact of adopting all changes will result in no impact to inventory as all recommendations are based on a Virtual Warehouse Drop Ship approach
Sales & Impact
New market development items for emerging and growing demand resulting from shred service migration. Net sales impact is unable to be determined at this time.
Margin Impact
Increased margins in both % in dollars as many of these items do not have competing items in the market today.
SP RichardsCategory Rationalization RecommendationsNSA Approved High Security Level VI Product Class
SP Richards
NSA Approved High Security Level VIMfg Model Cut Type Sheets Cycle Waste Bin Price Group Impact & Benefit
Add HSM B24L6 HS 8 Continuous 9 $2,600 HS
Add HSM B34L6 HS 12 Continuous 26.4 $4,400HSM 1252L6BNDL HS 7 Continuous 20 $5,300 HSHSM HSM 2252L6BNDL HS 8 Continuous 28 $7,087 HS
Add (virtual) HSM P36L6 HS 14 Continuous 38.3 $10,300 HS
Up sell opportunity to HSM 225. Demand seems to be migrating to this model due to the built in automatic oiler and Energy Management system.
Add (virtual) HSM P36L6 OMDD HS 14/2500 Continuous 38.3 $13,000 HS
Exclusive mutli function machine for both paper & optical media. Sales growth of his units has been 22% month in the first 6 months since it's introduction.
Provides entry level price point product within the HS class not previously available. Early growth estimates of this product are 42% in incremental volume to the overall HS category. Approx 2% of overall sales.
SP Richards
Category RationalizationClass & Sub Class Recommendations ImpactNSA Approved High Security
SP Richards
Inventory Impact
Net impact of adopting all changes will result in a 100% increase in overall sku’s within the product class. Total increase is 2 items. Carrying costs will be offset by higher sales within the product class.
Sales & Impact
Up Sell - Sales increases at the sku level will result in a sales pick up of 42% - 56% within the high security category.
New Item Adds - Overall shredder category sales will increase by 2% based on HSM’s internal data as a % to total sales.
Margin Impact
Increased margins dollars & % as a result of new sku introductions with limited/no competition.
SP Richards
Category RationalizationSummary of Total Impact
SP Richards
Overall Inventory Impact
Net impact of all changes:
0% change to overall sku count category is 56 items in total.
Overall Sales & Impact
Up Sell- Sales increases at the sku level will be between 3.45%- 56% based on migrating demand to the next closest price point with similar specs.
New Item Adds- 5.4% pick up in overall shredder sales based on HSM‘s trends for these models as a % to overall sales.
Overall Margin Impact
Increased margins should be realized based on better list to cost spread coupled with increased demand.
Total net impact can be calculated by completing the provided impact calculator
SP Richards
Thank you!
SP Richards