More Than Just "Over"- Stocks

CLT's demonstration of reliable and discreet stock disposition, quite often progresses supplier relationships beyond the basic relief of unwanted inventories created by:

Shortfalls to period sales targets. Package changes. Seasonal and promotional pack overages. Discontinued products. For many brand manufacturers, CLT has earned a more strategic role in the management of inventory to help keep their balance sheets healthy, their production lines running or assist them in meeting their promotional objectives.

Click on the references below to review case studies of how some manufacturers have creatively taken advantage of CLT's broad international market.

1. Dormant brand name resurrected to keep production running.

   An unexpected retail shift in promotional emphasis resulted in a significant reduction in the sales forecast. The standard cost budget assumed a minimum 80% production capacity utilization. To avoid the inevitable production cost variances due to under utilized capacity, a major brand laundry detergent manufacturer resurrected an old but known brand name, producing large quantities to sell exclusively to CLT. Production levels exceeded the 80% threshold salvaging the standard cost.

2. Response to a competitive inroad was accelerated.

   In response to a competitor's pending announcement, the timing of a national launch of an "improved product" was critical for one of the leading hair care brands. A predetermined plan for CLT to manage the disposition of remaining stocks of "old" product, allowed the brand to "move up" the announcement date of their re-launch and ultimately accelerate the introduction of the new product.

3. Sampling budget salvaged by "economies of scale".

   An aggressive trial size sampling program was planned for the introduction of a new cosmetic product. Unfortunately, to hit the per bottle price point, the manufacturer would have needed to produce far more than what their marketing budget would allow. CLT agreed to purchase the incremental trial packs required to reach the economies of scale, repackaged them into smartly designed multi-packs and moved them entirely out of the brand's market.

4. Merchandising roadblock solved.

   A large US retailer's strategy of "one size- one variety" product limit and customized merchandising vehicles, made brand distribution unaffordable for this toothpaste manufacturer. Combining other brand deals with the toothpaste product, CLT developed a mixed sku PDQ program that complied with the retailer's merchandising rules realizing incremental sales for the toothpaste brand.

5. Incremental sales realized using "old" packaging.

   Market growth of a major hair styling aid had stalled putting budgeted targets in jeopardy. Dusting off discontinued container molds and at the same time using up large quantities of obsolete packaging components, the company produced more than enough product to fill their sales shortfall. Their "old style" product fit "quietly" into CLT's "retail network" turning a potential loss into incremental profits.

6. Exit strategy incorporated into marketing plans.

   A consumer packaged goods manufacturer needed to boost sales of one of its smaller brands but did not have the confidence to implement a promotional solution. CLT guaranteed the relief of undersells and retailer returns. With production run quantities that made the promotion profitable at less than 80% sell thru, the brand manager was able to include the promotional program in his annual marketing plan.