Clorox Case Study - Council of Logistics

Introduction Clorox is a greathearted participation that manufactures and grocerys consumer products. The US-based corporation had a revenue of $4.8 billion during the 2007 financial year and employs 8,300 people worldwide. Their products be manufactured in to a greater extent than 24 estimateries and marketed in more than 100 countries. Clorox has catchn half a dozen year straight now, that the company keeps expanding their merchandise to burn down this growth. This way of growing caused the number of downstairsperforming products to grow as well. The SKU count of the Clorox has increased by 50% surrounded by 1998 and 2001 while the clear gather margin decreased from 9.6% to 7.9% in the midst of 2000 and 2002. Research in any case revealed that 30% of the companys SKU were f alling short of sales volume and profit goals. The sales section kept asking for more products and specials to figure the profit goals. On the other side, the supply chain rung was more con cern with out of stock, inventory coalesce and customer service, which was under stress by the growth in merchandise. The VP of Supply orbit at Clorox. John Sinclair, and his group had to uncovering a extraneous way to keep growing in the competitive market the company is in. John Sinclair and the executive team have to cook a process for managing the SKUs that would not allude growth but make growth more fat, all without causing home(a) alignment issues between the different departments.

SKU Rationalization Because Clorox is in a downward spiral, it needs to develop solutions that will give the company a competitive edge and wi ll make their products profitable again. st! ar strategy Clorox should consider is SKU rationalization. SKU rationalization is outlined as an analytical process used to determine the merits of adding, retaining, or deleting items from a retailers merchandise assortment. An effective SKU rationalization program lays... If you urgency to cohere a full essay, order it on our website: BestEssayCheap.com

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