With an annual turnover of ₹60cr, this multi-brand textile retail firm grew its net margin by 17% in no time! Let’s see how.

Client Challenges

  • Quantity of stock began piling up in the warehouse
  • Purchase managers made the wrong decisions on when, how and how much to order
  • Customers are attracted to lower prices and hence profits are low

PKC Solutions

  • Introduced ROLs and EOQs for various SKU.
  • Developed sales forecast model to arrive at the purchase requirements.
  • Designed and implemented appropriate Pricing strategies
  • Conducted detailed diagnostics & eliminated extra purchase costs.

Results

  • 21% Stock reduction
  • 90% Accurate purchasing
  • 17% Increase in overall net margin
  • 12% Reduction in Purchase cost
  • 18% Reduction in inventory holding cost

 

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