Bulgin, a Renowned Connector and Switch Manufacturer, Elevates Partnership with Waldom Through the Green Stock Program
Bulgin, a renowned manufacturer of connectors and switches, had long benefited from various Waldom programs, including Low Volume, New Product Introduction (NPI), and Network Optimization initiatives. These programs had fostered a strong and productive relationship between Bulgin and Waldom. However, one critical element was missing that could elevate their partnership to a new level: the Waldom Green Stock Program. This case study explores how Bulgin's integration of the Green Stock Program led to significant improvements in their supply chain efficiency and sustainability efforts, resulting in remarkable financial gains.
Tackling Inventory Challenges
Before signing up for the Green Stock Program, Bulgin faced the challenge of managing distributor returns. Bulgin preferred to take this stock back and sell it independently, which allowed them to maintain control but posed several operational challenges. However, Bulgin recognized there was room for improvement, especially given the increasing need for streamlined operations and sustainable practices.
Reclaiming Product Value: The Green Stock Program
Waldom's Green Stock Program offers a unique and efficient solution for managing excess inventory. The process begins when suppliers send their distributor returns to Waldom. Waldom then offers these returned items to its extensive network of over 2,500 distributors. Profits from the sales of these items are equitably split between Waldom and the supplier. The program enhances supply chain efficiency by reducing the burden on suppliers to manage excess inventory and promotes sustainability by ensuring returned products are reintroduced into the market rather than discarded, thus minimizing waste.
Onboarding the Green Stock Program
The transition to Waldom managing the distributor returns of the manufacturer required careful planning and negotiation. A pivotal agreement was reached where Waldom would, at the end of each rotation period, compile a list of returned product for the manufacturer to review.
The manufacturer had the opportunity to cherry-pick items with open orders or those anticipated to sell soon. Waldom would then handle the logistics of packaging and sending these selected products back to the manufacturer, while selling the remainder.
Green Stock Program Delivers Results
This system operated smoothly across two to three rotation periods, during which Waldom demonstrated exceptional proficiency in selling the returned product. The success was so pronounced that the manufacturer progressively reduced the number of items they reclaimed, as they observed Waldom's ability to sell even those items they had initially deemed unlikely to be sellable. Currently, it is rare for the manufacturer to request the return of any products, acknowledging the program's effectiveness.
The integration of Waldom's Green Stock Program with Bulgin's operations proved to be a game-changer. The promotion of the inventory by Waldom generated great success in year 1 with the expectation that the majority of value will be recovered within the first 3 years. In the first year, Waldom was able to recover 30% of the value of the excess inventory. As time progressed, Waldom's ability to sell increased steadily through integration with distributor partners and enhanced visibility within their network. Projections indicate that by the second year, Waldom will achieve a 50% recovery rate, with expectations soaring to 70% by the third year.
