TOM INGRAM AND ASSOCIATES, INC.

Outsourcing of In-House Merchandising Teams

Success Stories*

(4)  Manufacturer Outsources Merchandising Work, Improves Execution from 90% to 98%, Saves $750,000 to $1,250,000*  Salary and benefits for 1,200 reps were reduced by 20%+   http://www.tomingraminc.com/SalesProcessImprovement.htm#(4)

(27)  Manufacturer Saves $10 Million, Compliance Improves 135% by Outsourcing In-House Merchandising Team.  Immediate Savings Of 32% Per Visit. Employees Reduced from 400 to 40*.  Associate led effort to reduce internal merchandising staff of 400, which called on 8,000 locations servicing high sku count products.  The in-house team was not performing for a number of reasons, including the rep’s inability to be effective in two different chains at the same time.  (E.g. Wal*mart and Macy’s.)  (JF)  http://www.tomingraminc.com/SalesProcessImprovement.htm#(27)

(28) Manufacturer Saves $2.5 Million over 5 Years, Improves Distribution 4%, Reduces  New Item Speed to Shelf by 30 Days, Increases Displays Sold by 17%, through Outsourcing of In-House Merchandising Team (estimated).*  Associate led effort that outsourced the work of 250 full-time people to a 3^rd party.  65% of the manufacturer’s employees accepted positions at the 3^rd party at a reduced salary.  Reporting capabilities for account management team also were improved.  (PL)  http://www.tomingraminc.com/SalesProcessImprovement.htm#(28)

(29) Manufacturer Saves $20 Million, Increased Sales $225 Million (30%) Over Five Years by Outsourcing In-House Merchandising Team.  Associate led effort to outsource struggling in-house merchandising team, including disposing of fleet and using multiple external services.  In-house team was struggling due to rapid growth of brand and distribution.  (JF)  http://www.tomingraminc.com/SalesProcessImprovement.htm#(29)

(21)  $125 Million in Additional Sales for Manufacturer by Reducing Out Of Stocks by 5% (estimated),  $1 Million Cost Savings through Outsourcing of In-House Merchandising Team.*  Associate managed the team and its P&L.  Achieved approximately 5% reduction in Out of Stocks (key goal of the effort) and saved manufacturer $1 million per year in merchandising costs at the same time.  (Manufacturer’s sales are about $4.5 Billion.  We are assuming that a 5% reduction in out of stocks will result in additional sales of approximately $125 million.)  (PL)  http://www.tomingraminc.com/SalesProcessImprovement.htm#(21)

(59) Outsourcing In-house Merchandising Team

• Phase 1 Cost Savings of $1,700,000 Savings Per Year (Approx.)
• Reduced Average Hourly Cost (including overhead) from $38 per hour to $26 per hour for 76 people.
• RIGHT FIELD MERCHANDISER IN RIGHT PLACE, WHEN NEEDED:  Increased Store Visits by 25% for Same Budget Dollars (Approx.)
• BIG BENEFITS FROM LONG TERM PROGRAM:  Manufacturer Was Acquired, but Director of Retail Merchandising Continued Running Program for Acquirer, Continuously Improving Results Over the Years.  See additional success stories for same program:

• Comprehensive Training Makes The Difference.
• Ultimately Reduced Full Time Staff by 50%. (DY)

Details http://www.tomingraminc.com/OutsourcingInHouseMerchTeam1.pdf

(60) Outsourcing In-house Merchandising Team

• Cost Savings of $7,000,000+ Per Year (Approx.)**
• $38.5 Million Sales Increase Per Year from 5.5% Market Share Gain (Taken from #1 Competitor! – Approx.**)

• New Product Cut-In Rate Raised from 70% to 99%+

• Fixed Costs Moved to Variable Costs, Shared With Other Manufacturers
• 65% Full Time / 35% Part Time Work Force Changed to 30% Full Time / 70% Part Time  (DY)

Details http://www.tomingraminc.com/OutsourcingInHouseMerchTeam2.pdf

*  Success stories and client quotes are provided as general illustrations of past performance, and are not intended to convey exact financial information, circumstances or dialog.  No representation is made that a particular prospective client will achieve a particular result.  Details on the specifics of each success story are available upon request.