Fortified against “Amazon Effect” to defend market share
Situation:
Amazon trained customers to expect rapid order delivery. An office products manufacturer was feeling the “Amazon Effect” and needed help competing with Amazon’s two-day delivery guarantee.
Actions:
- Developed a forward position inventory strategy
- Evaluated 300,000 total SKUs and selected 100 for rapid delivery to customers
- Reduced costs by determining more cost-effective manufacturing and storage locations
Results: Implemented strategy to defend the manufacturer’s top 100 SKUs against Amazon encroachment.
