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公司

美国高级乐器制造商

需要

为了扭转电子商务销售下滑的局面, the company was considering adding a distribution and assembly facility in 欧洲 to be able to offer lower prices and faster shipping.

目标

Assess the opportunity to increase sales in 欧洲 by:

• 精简供应链
• Receiving and assembling parts closer to 欧洲an clients
• 保持高端品牌地位和利润率

挑战

With no international manufacturing or distribution facilities, the company was  passing on the shipping and import cost to its 欧洲an customers —- which made them less competitive with local businesses.

A customer survey indicated that lower prices would be the best way to 服务 the 欧洲an market, but the company needed additional 欧洲an sales in order to justify supplying customers directly in market.

The leadership team needed to know a few things before developing its global expansion strategy:

• Would streamlining the supply 链 result in higher sales?
• Was investment in 欧洲an expansion the only solution?

加大国际销售的力度

In addition to these challenges, the company faced other hurdles.

• 强大的U.S. 美元
• 客户对到岸成本的不确定性
• 有限的欧洲语言和营销方案

The company previously had proven it could increase international sales through a customer loyalty program, 但是在这种情况下, 它受到供应链的限制. By streamlining its supply 链 to enable receiving and assembling closer to 欧洲an clients, 公司领导人认为他们可以提供更快的服务, two-day shipping and lower prices by reducing fully landed pricing and shipping fees. 

创建决策框架

公司 leaders engaged RSM Business Strategy Advisory 服务 to help them assess the opportunity.

They divided the challenge into financial and non-financial goals and then built a decision framework that could help the client systematically explore all potential options and determine which expansion model best fit its requirements.

建模投资决策

The RSM team began by confirming the client’s initial goals for its 欧洲an expansion. 下一个, they studied the company’s international sales by inventory SKUs to determine a potential starting inventory for 欧洲. That was followed by creating a dashboard to model investment decisions based on sales and initial investment assumptions.

最后, the RSM team conducted a distribution center assessment for multiple 欧洲an locations and walked the client through the decision framework to develop an implementation roadmap that would meet the company’s goals.

通过优先排序来细化目标

To truly get to the heart of what the client needed for its path to growth, RSM underwent an iterative discovery process that took about two months. Through discussions, RSM developed a deep understanding of the client.

The RSM team could then focus in on the best target-market fit based on the client’s goals, the company’s largest near-term growth opportunities and multiple points of validation.

For example, RSM assessed engaging a third-party logistics company vs. 业主管理的设施. This included identifying investment hurdles for each scenario, 初始投资建模, understanding the impacts to customer 服务 and landed costs, and finding location options for customer 服务 shipping.

摇摆不定的销售目标

RSM’s modeling showed that the business should try to increase non-U.S. sales to better support its expansion and cover operating costs. 

在扩展研究期间, RSM’s analysis predicted that offering the sales loyalty program overseas while charging less for shipping and accelerating delivery would boost sales. 首席执行官立即实施了这一建议, and sales skyrocketed across each country from 14% to 30% in three months.

一旦订婚完成, the RSM team presented the formal final findings to the client for board approval. 由于销售额的增加 , the company had set its global expansion strategy: increasing market share without immediately setting up a costly overseas location. 今天, its market share is still growing and the company is planning for additional manufacturing and warehousing.

At RSM, helping our clients realize their full potential is music to our ears. To find out how we can help you explore your own potential, contact our 策略谘询小组.