Licensed apparel company looking to better manage their diverse customer base.
Client
Privately held 150 year old North American based licensed apparel company.
Impact
Focusing on 2 key accounts helped grow revenue by 40% in 2 years.
Issue
The client had 70% of its revenue tied to a single account, and had problems managing its margin requirements as well as order complexity with this customer. It was having trouble maintaining its margins as this customer had a tremendous amount of re-work, had over 1,000 SKU’s to manage, and was unable to provide any sort of forecasting.
Approach
We helped re-segment its customer base, and helped design an account management plan that would re-orient its key account structure to focus on 2 other key accounts who would offer better terms, higher revenue and margins, as well as lower its order complexity (due to less SKU’s and packing requirements). We built and implemented new key account plans, and a quarterly review process that aligned to these new key accounts’ procurement processes.
Outcome
By reducing its reliance on a poorly performing key account and focusing on 2 high performing customers, this client was able to radically improve its revenue and margins, as well as improve its operational capacity and efficiency.
