Manufacturer Churchill China enlists tool to increase velocity, profitability of demand creation
West Chester, PA — October 18, 2004 — In a bid to increase the profitability and speed with which consumer products and promotions are introduced to market, Prescient, a provider of retailer-centric software and services for consumer products companies, today announced the launch of Product Profiling.
Now available in Prescient 6, Product Profiling is a demand analysis software tool for new product introductions, promotion analysis and product lifecycle management (PLM). Prescient 6 is the latest version of Prescient's supply chain planning suite.
According to Prescient, between 35 and 50 percent of a product's potential for revenue generation occurs in the first two years following its introduction. Because new products account for such a significant percentage of revenue, the provider said it is critical for organizations to manage the profitability of these products throughout their entire lifecycle. The company said Product Profiling is designed for consumer products companies looking to drive demand for their products while increasing their profitability.
Churchill China, a United Kingdom-based manufacturer of ceramic tableware, serves both the restaurant and household tableware markets. A greater eye toward fashion and lower costs has created a shorter lifespan for household tableware, averaging one to two years. The company implemented Prescient's demand planning solutions more than a year ago, and turned to the company once again to help with the new product introduction process.
"New product introductions account for 45 percent of our annual revenue, so we can't afford to miss on our forecasts," said Alistair Henderson, network manager, Churchill China. "With close to 3,000 [stock-keeping units (SKUs)] being introduced each year, we knew we needed planning and forecasting capabilities. Prescient's Product Profiling enables us to forecast the demand for, and profitability of, new product launches."
Churchill China enlisted Product Profiling to predict the profitability of new products in the household tableware category throughout their lifecycles so that the products ultimately designed and delivered to market accurately reflect current purchasing trends.
In addition to facilitating new product introduction, Prescient said Product Profiling provides insight into how other events, like the discontinuation of a particular product or a two-for-one promotional deal, will impact demand forecasts and revenue streams. Users can determine the profitability of these events in advance through an analysis of past demand patterns and pricing of similar products. They can also plan inventory pipeline-fill requirements because of increased visibility into consumer demand.