Customer Success Stories
‘Watchdogs’ keep track of new products
Sanistål systematically follows up on new products from the day they arrive until they become a success. This has boosted the company’s success rate from 60% to more than 80%.
The product coordinators use ABC Analyzer for monitoring and call ‘all hands on deck’ if any of the new products fail to perform.
It is simply unacceptable to find products that have been sitting on the shelves for yearsRene Grøn, Head of Product Support, Sanistål
A couple of years ago, Sanistål started cleaning out its warehouse and discovered a large number of low-turnover products taking up unnecessary space. This was because no-one was checking whether new products were performing as expected.
In 2012, Sanistål therefore began monitoring new products systematically to ensure that any products that were not selling were identified in good time.
Rene Grøn, Head of Product Support, was responsible for implementing the project. “It is simply unacceptable to find products that have been sitting on the shelves for years. We either breathe new life into them – typically through extra marketing – or pull them out of the range,” he explains.
Risk products identified in time
When a product coordinator identifies a risk product in ABC Analyzer, the product manager is called in for a meeting. Here, coordinator and manager discuss whether the product should be given a new shot of marketing or pulled from the range. In this way, Sanistål can return poorly performing products to the supplier in time.
New KPI assures success
Today, the product managers are measured on how well new products perform. “You need to measure and motivate the staff towards precisely the behaviour you want – that is the way to ensure progress,” says Rene Grøn. Sanistål’s results demonstrate that both the theory and Sanistål’s new KPI – used jointly with ABC Analyzer – work in practice.
Previously, the success rate for new products was at 60% – today it is more than 80%.
Trial period: 12 months
Sanistål has set up 24 categories in ABC Analyzer for their new products, 12 green and 12 red: They function as a simple traffic-light system, and illustrate the performance of new products month by month after implementation. Products that perform well are automatically placed in the green category, while those that do not are relegated to the red category.
For the first three months, the new products are ‘protected’, but in months four and seven, the product coordinators react unless the products live up to finely defined mathematical criteria. Red products are risk products that are falling short of expectations, while green products are selling satisfactorily.
Systematic monitor phase in and out, ensuring new products with low turnover is discovered in time.
The division of responsibility is made clear between the product coordinator and the product manager. New products with low turnover are highlighted by custom-build analyses in ABC Analyzer.
The success rate on new product has gone up 20 %