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Are You Optimizing Your Investment in Promotional Materials?

In a recent survey, respondents estimated that 5-15% of their promotional materials were written off annually. For a company investing $1,500,000 in promotional materials this would mean estimated inventory write-offs of over $160,000 per annum.

Measure Your Sales Rep Service Levels
MetricsSurvey ResultsYour Company
Estimated annual promotional inventory$1,500,000
Inventory write-off/obsolescence1$150,000
Warehousing and destruction costs2$12,750
Estimated obsolescence inventory costs$162,750
1obsolescence rate 10%, inventory value only
2based on $20.00/mth storage rate and 75 pallets carried for 6 months and destruction fees of $50/pallet

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