Case Studies

Case Study: CRM for billion dollar specialty footwear retailer

The Challenge:

As a byproduct of the strategic planning workshops the company and BOD approved a project to transform the company’s Marketing and customer relationship management approach. The following objectives were established:

  • Enhance the customer loyalty program
  • Build a contemporary digital marketing function
  • Create a “single view ‘ of the customer data base
  • Leverage customer information to tailor customized marketing offers

The Solution:

  • Hired by CEO to create a project management office
  • Current assessment of Marketing function (people, process and technology)
  • Development of three year CRM roadmap with milestone workplans and budget
  • RFP and selection of CRM software solution
  • Enhanced customer loyalty program

The Results:

  • 90 basis point improvement in selling margin;
  • 150 basis point improvement in sales conversion;
  • Double digit income growth in year one;
  • Highest sales volume and earnings in company’s history
  • Customer information integrated into all key company decision making from real-estate to merchandising to pricing

Case Study: Procure-to-pay cost re-engineering

The Challenge:

Footwear retailer seeking ways to reduce non-merchandise procurement expenses and find cost savings to fund strategic investments identified by the Board of Directors and management.

 

The Solution:

  • Conducted a detailed general ledger review of all procurement categories and documented spend by vendor;
  • Prioritized spend areas offering highest potential for re-negotiated cost savings;
  • Implemented a procure-to-pay reverse auction software tool and conducted auctions for the prioritized spend areas

The Results:

  • 27% reduction in original base line spending;
  • Over $3 million dollar savings in procurement cost used via reverse auction

Case Study: B2C Program Build & Launch

The Challenge:

Specialty apparel and footwear retailer seeking to expand its assortment and on-line brand presence engaged PE Advisors to build a drop ship capability on the website.

The Solution:

  • Partnered with Finance and Merchandising to build a B2C financial model and pro-forma;
  • Worked with digital and IT team to develop user requirements for drop ship software solution;
  • Selected software vendor, negotiated contract and implemented software solution;
  • Developed vendor on-boarding program with Merchant team and rolled out top ten vendors.

The Results:

$10 million dollar incremental sales volume in partial year 1

Case Study: Business Strategy Development

The Challenge:

  • Contacted by the Board of Directors of a public specialty retailer to serve as facilitator for a series of strategic planning workshops with executive management;
  • Board identified five core areas of focus: e-commerce growth, customer service/marketing, real estate strategy, working capital productivity and long-term IT strategy and capital allocation.

The Solution:

  • Conducted one-on-one interviews with Board and executive leadership;
  • Developed data request around five core areas and performed due diligence and data analysis around each area;
  • Worked with management to develop current state assessment, SWOT analysis and strategies/tactics;
  • Developed meeting agenda, workshop framework and facilitated planning sessions

The Results:

  • Executive and board alignment around three year real estate strategy;
  • Decision to implement and CRM digital marketing program, enhanced customer loyalty program, omni-channel view of the customer and customer segmentation;
  • Alignment around three-year IT application strategy and capital plan

Case Study: Procurement Cost Reduction for multi-billion dollar department store

The Challenge:

As a byproduct of the strategic planning workshops the company and BOD approved a project to transform the company’s Marketing and customer relationship management approach. The following objectives were established:

  • Enhance the customer loyalty program
  • Build a contemporary digital marketing function
  • Create a “single view ‘ of the customer data base
  • Leverage customer information to tailor customized marketing offers

The Solution:

  • RFP and selection of CRM software solution
  • Enhanced customer loyalty program

The Results:

  • 90 basis point improvement in selling margin;
  • 150 basis point improvement in sales conversion;
  • Double digit income growth in year one;
  • Highest sales volume and earnings in company’s history
  • Customer information integrated into all key company decision making from real-estate to merchandising to pricing

Case Study: Acquisition Integration

The Challenge:

Private equity company acquired three struggling outdoor lifestyle brands and hired PE Advisors to lead the integration of the three businesses and delivery cost synergies.

The Solution:

  • Established PMO office, project teams and workplans
  • Led Organizational review, assessment and re-design
  • Real Estate rationalization and consolidation of multiple headquarters
  • Vendor assortment review and consolidation
  • Store business process re-design including implementation of engineered labor standards, time & attendance and labor scheduling software
  • Selection and implementation of a shared merchandising ERP system and product hierarchy

The Results:

  • Executive and board alignment around three year real estate strategy;
  • SG&A reduction of $4 million
  • Common merchandising platform and reporting across three brands
  • Single headquarter and consolidated organization structure

Case Study: Supply Chain Optimization

The Challenge:

Vertical private label product development, design and sourcing function obtained via acquisition was plagued by high turnover, three successive year-over-year declines in business penetration and margin erosion in excess of 600 basis points.

The Solution:

  • Assumed interim leadership of the function
  • Conducted organizational review, assessment and re-design
  • Relocated function to consolidated home office
  • Implemented streamlined product development calendar
  • Selected and implemented new PLM software solution
  • Conducted rigorous review of sourcing base and created new factory diversification plan
  • Re-designed quality control and vendor compliance programs
  • Help build new fit standards and design specifications

The Results:

  • Improved time to market by 20%
  • Increased penetration of Western Hemisphere factory sources by 20% and diversified factory base
  • Increased headcount 20% while lowering total costs by 18%
  • Improved private label margins by 95 basis points in year one
  • Increased private label penetration by 5% in year one

Case Study: Acquisition Integration

The Challenge:

Private equity company acquired a fast fashion apparel retailer that had to vacate its corporate headquarters and distribution center in less than four month or risk multi-million dollar landlord penalty.

The Solution:

  • Established PMO office, project teams and workplans
  • Co-lead corporate office site selection, lease negotiation, design, build-out and relocation
  • Led RFP and selection of third-party logistics solution including inventory transfer and transition of warehouse operations
  • Responsible for the sell-off and recovery of corporate assets in both headquarters and distribution center

The Results:

  • Successfully opened new corporate office on-time and avoided financial penalties of between $500K and $1.5 million
  • Transitioned distribution center operations to 3PL vendor and avoided lease liability
  • Sold off majority of existing fided assets and recovered over $4 million dollars

Case Study: Procure-to-Pay Process Improvement

The Challenge:

Large regional department store experiencing financial difficulties engaged Alix Partners to conduct an SGA Quick Strike review and recommendations

PE Advisors was hired to implement process improvement and cost take-out within the non-merchandise procure-to-pay

The Solution:

  • Implemented reverse auction procure-to-pay software solution for all vendor/expense categories highlighted by Alix Partners;
  • Conducted proof of concept of software tool
  • Rolled out company wide use of reverse auction software
  • Negotiations and contract with private equity buying cooperative

The Results:

  • Annualized savings of $1.3 million or a 13% reduction in baseline spending year one

Case Study: Business Strategy

The Challenge:

Home furniture and furnishings specialty retailer located in Canada with two distinct brands and a wholesale business sought the development of strategic plan.

The Solution:

  • Developed a custom tailored strategic planning framework consisting of industry assessment, competitive analysis and internal assessment
  • Reviewed and analyzed internal company financials, organization charts, budgets and consumer data
  • Planned and facilitated off-site strategic planning sessions with executive committee and each business unit’s executive team
  • Identified and documented strategic objectives, strategic imperatives and business enablers/initiatives

The Results:

  • Strategic business planning process linked to annual budget and repeatable annually
  • Prioritized initiatives for year one and three-year competitive growth strategy
  • Alignment with each brand executive around the imperatives for their brand
  • Document for review and approval by Board of Directors
  • Three year IT strategy of each brand and linked to the business strategy
Call Us 24/7
OR

Call for a free consultation