A
company outperforming its competitors on Quality, and matching
them on Price, was not enjoying the anticipated level of
sales success
Our study compared the manufacturing and distribution operations
of our client with those of two competitors. Customer research
revealed that although the client's product was considered
slightly superior to competitors', there was a comparative
weakness in service, resulting from a different distribution
method.
Focused study of one of the competitors revealed the surprising
fact that its radically different approach to distribution
was yielding a previously undetected double advantage - in
terms of both cost (through lower levels of stock-holding)
and customer satisfaction (by allowing customers greater flexibility
in their ordering patterns and shorter lead-times, which they
actually valued more highly than slight superiority in product
quality).
Further analysis resulted in detailed action plans for significant
cost savings to our client, plus greatly improved customer
service and competitiveness.
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