NEW ITEM EXCELLENCE
Ruthlessly eliminate complacency that hinders New Item Excellence
CATALYST APPROACH: 3X
To commit to new item success, invest at
least 3X your time invested in new items compared to the rest of your portfolio.
So, if 5% of your items are new, at least
15% of your item focus should be
invested in new item management.
Many of us consistently under-perform in this critical area. &
Very few leaders push for
New Item excellence.
#1 Assuming they will ‘eventually’
catch up and be fine
PREPARE FOR SUCCESS:
1 DETERMINE YOUR TEAM
New item excellence is as much about collaboration as your components
2 SET YOUR INITIAL COMPONENTS
The guidance below is designed to provide the best start possible
MR FRIENDLY'S COMPONENT GUIDANCE
NOW MEASURE & ADJUST
fRANK vAN vLECK
New Items Are..
Of Total Items
Of Total Inventory $
Of Sales Revenue $
WHAT ARE YOUR NUMBERS TELLING YOU?
NEW ITEM DEMAND DEVIATION
Why start every item with a default deviation (madp) of 20%?
You know faster movers will be low, and slower movers will be higher?
Why not simply print YOUR average numbers and use those as a starting point when launching a new item?
To the left is one company's example.
TIPS FROM THE COMMUNITY
STEP 1: If you agree with the New Item 3X strategy,
tell your team and help them make time