NEXT CASE STUDY
Case Study: Eliminating Cash Payouts
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Protecting profits by eliminating cash or draft payouts is a critical first step to taking control of any DSD category |
Company Description
A Fortune 500 drug retailer with more than 6,500 stores nationwide and several billion dollars in annual revenues.
Challenge
Needed to eliminate the process of paying nearly $10 million in cash out of registers to some DSD vendors, which made it impossible for Merchandising to track sales, and for Loss Prevention to control risk of shrink and fraud.
Actions
- iControl worked closely with the customer to communicate new guidelines to stores and vendors at the start of the program
- After the program began, results were tracked weekly by iControl – by store – and iControl directly contacted any store or vendor that was not complying with the new guidelines.
Results
iControl delivered a more efficient, measurable program that immediately streamlined the customer’s process and phased cash payouts in weeks.
- Cash payouts decreased from $11 million per year to under $50,000 per year within 6 weeks
- Cash payouts decreased from $50,000 per year to under $15,000 per year within 10 weeks
- Cash payouts decreased 99.91% within 12 weeks, to under
- 99.99% of Cash payouts were eliminated within 14 weeks
- Results have been maintained the past four years
- The retailer ended up saving millions of dollars in COGS per year, after cash payouts were eliminated
Maintenance
iControl continues to track cash payouts by store on a weekly basis. If any exceptions prop-up, iControl immediately deals with them by contacting the store, its district supervisor, the distributor, and the retailer’s LP contact.