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Still
considered to be the top brand by many professionals across industries,
their tools and accessories are fast becoming a top choice among
a growing number of consumers and homeowners looking for a higher
quality product providing more power, features, longevity and
consistent performance.
Challenge
This company actively promotes its products with a variety of
special offers and incentives throughout the year. With increasing
competition in one key market and favorable response to a particularly
popular product line, they looked to expand on their "product
rebate" promotions to include additional accessories. The
purpose was to provide improved response services, gain market
share, and control net fulfillment cost per response. Critical
to the promotion was timely access to response data in
order to forecast demand for smooth supply chain performance
in addition to calculating cost per redemption and determining
return on investment (ROI).
Solution
MDS designed a quick response database system for order capture,
inventory management, automated order qualification, and specialized
fulfillment. The system also had to be capable of delivering data
for reporting and analysis. With a simple, yet effective fulfillment
system, this client was able to match inventory levels to demand
by quickly measuring emerging response patterns and forecasting
future inventory demand from MDS reports. This system enabled
the client to achieve its goals:
A] Initiate timely, just-in-time inventory production with its
vendor base
B] Ship on time
C] Reduce customer service burdens
D] Measure per response / total fulfillment costs for future budgeting
and calculating ROI.
Successes
Beyond achieving predefined goals, many value-added benefits accrued
to the program. First, a lower overall net cost per response was
realized with MDS over former methods and suppliers. By having
MDS also fulfill all related promotional materials and literature
to its nationwide retail channels, dealers received campaign materials
complete and on time to successfully jump-start the promotion
and create demand. Product sales and response went well beyond
a projected 5,000 response benchmark set in previous years, exceeding
30,000 rebates in the first year with MDS. MDS provided consistent
quality, accurate and timely fulfillment, and expert handling
of the varied challenges of an unexpected high response. MDS back-end
response services combined with the successful deployment of front-end
POS materials to the field fueled high response rates and drove
the promotion toward a successful conclusion.
This
company believes MDS management of end-to-end fulfillment services
for the program was as much a primary reason for its success and
overwhelming response levels as the popularity of this perennial
favorite "free product with purchase" offer.
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