Products and product lines change. Customers and customer demands change. The arrival and departure of competitors change how manufacturers and retailers work together. Nowadays, however, change is more top of mind than ever: Global markets are repainting the selling and sourcing picture. Retailers are more in control of the overall relationship. And economic travails are squelching sales, altering pricing strategies and redirecting promotional activity.
As a result of these changes in retail buying patterns NeutriSci focuses its retail efforts on “Channel Optimization”. NeutriSci seeks to identify highly profitable (or unprofitable) customers, and then leverage supply chain mastery to increase (or reduce) total expenditures on behalf of those organizations. Throughout the branded manufacturer community, significant costs are expended on services to retailers and retail distributors. This is neither wrong nor inappropriate. However, a growing body of research reveals that those expenditures aren’t doing enough to improve long-term growth prospects for the manufacturer. In fact, there are many situations when those services are neither needed nor appreciated by the customer.
Given the current economic climate, NeutriSci has concentrated on the long-term profitability of all customers. These ideals must be considered, with carefully calculated amounts spent on the “right” customers rather than just the largest or most strategic. This is the goal of channel optimization—enacting policies and service decisions that identify highly profitable (or unprofitable) customers, and then leveraging supply chain mastery to increase (or reduce) total expenditures on behalf of those organizations.