Case Study: Strategic approach to seasonal inventory management

Challenge

This international packaged goods company wants to lock-in seasonal product sales 

Corporate Trade solution

  • The trading up play is used as a strategic approach to seasonal inventory management: a fail-proof insurance policy against seasonal product overstock
  • Excess inventory is sold to their corporate trade partner at full value in trade credits
  • P&L write-downs are avoided
  • Trade credits provide a welcome cash savings to media campaigns

Results

  • Since 2011, the company has integrated the corporate trade partnership into their seasonal business planning for a number of brands
  • They've used this strategic solution to lock-in value across 27 different seasonal inventories
  • Cash savings of over $3M in media using trade credits (an average 15% of total media spend)
  • A smart way to liquidate old machinery

    A Canadian paper products manufacturer was stuck with a large, heavy piece of outdated machinery that weighed even heavier on their books.

  • Turning a short-coded nightmare into media opportunity

    A well-known international manufacturer of grocery products was under forecast on their product sales and needed to move an inventory of short-coded food inventory.

  • Maximizing value of pharmaceutical closeout inventory

    An international pharmaceutical and healthcare company was looking for innovative ways to get more value for their closeout inventory.