Case History #7 - Excess Inventory Liquidation and Process
Improvement - Regional Bell Operating Company
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Company Type:
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Network Integrator
Division of U.S. RBOC |
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Company Profile:
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Fast growing Division of a U.S. headquartered,
multi-billion dollar communications company, specializing in installation
and support of sophisticated enterprise networks.. |
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Technology MarketForce Tasks:
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Excess inventory liquidation. Evaluate
portfolio; investigate current market pricing; advise on sales methodology
and logistics. Technology MarketForce (TMF) arranged sales of over
$1 million of highly price sensitive, overstocked PC networking product
inventory. Merchandise was sold at above target prices, starting within
days of receiving assignment. Next TMF evaluated and redesigned complete
order entry and inventory management processes. TMF was subsequently
called back 2 years later to update and expand this initiative. |
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Methodology Highlights:
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Locate target customers through wide
ranging industry contacts / TMF database. Conceive and manage multiple
sales in spite of restrictive vendor license agreement. Arrange fast
evaluations; negotiate pricing and payment terms; and do all of this
in a manner that limits our Client's product support liabilities. |
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Key Results:
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After 6 months of little success prior
to TMF's involvement, inventory was successfully sold within 60 days.
All funds were collected in a timely manner and expensive warehousing
space was released. In subsequent project, TMF identified multimillion
dollar surplus inventory and created systems to avoid the problem
in the future. |
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Main Benefits of Technology MarketForce
Involvement:
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The Client was subjected
to highly restrictive license agreement and available channel options
by the original vendor. TMF was able to perform under these restrictions
and still achieve the desired objectives. Client was able to allocate
a minimum of manpower to the project and realize maximum return on
the inventory. Additionally, the work was completed faster than was
possible internally. TMF went on to save the client many millions
of dollars in operations inprovements. |
