90% Reduction in Storage CostsItzehoer Case Study
Our client Itzehoer
Liability, home and property, accident, or auto insurance: For more than 115 years, Itzehoer Insurance has been offering its customers the highest level of protection in all matters that may arise. Innovation, proximity, and trust are the cornerstones of the relationship between the insurance company and its customers—and, above all, between the company and its sales partners. Itzehoer e Insurance has approximately 400 sales partners based directly in northern Germany, known as “trusted representatives.”
The challenge
UNPREDICTABLE ORDER QUANTITIES
The individual requests and requirements of the union representatives made it difficult for headquarters to estimate order quantities in advance.
OVERPRODUCTION DUE TO
LACK OF DEMAND PLANNING
To take advantage of lower unit prices for large purchase quantities, promotional items were produced in advance in large quantities.
RISING STORAGE COSTS
Over time, this overproduction led to an ever-growing inventory of promotional items and rising storage costs.
UNPREDICTABLE ORDER QUANTITIES
The individual requests and requirements of the union representatives made it difficult for headquarters to estimate order quantities in advance.
OVERPRODUCTION DUE TO
LACK OF DEMAND PLANNING
To take advantage of lower unit prices for large purchase quantities, promotional items were produced in advance in large quantities.
RISING STORAGE COSTS
Over time, this overproduction led to an ever-growing inventory of promotional items and rising storage costs.
Our Solution
We designed our marcapo bulk order module specifically to address challenges like these. The module’s goal is to gather specific information in advance about the demand for selected promotional items from all sales partners before placing a binding bulk order. There are two different approaches to this:
Promotion Period
Promotional items can be ordered up until a deadline set by the operator. If the minimum order quantity is met, the quantity corresponding to the tier reached by that point will be ordered. If the minimum order quantity is not met, no order will be placed. This is particularly well-suited for seasonal items.
Ongoing Promotion
This promotion is available on an ongoing basis, and an order is triggered as soon as a predefined minimum quantity is reached. This process is particularly well-suited for best-selling items, as these products are always available in the marketing portal.
We are in a much stronger position today because we can plan and allocate the associated financial, human, and logistical resources in a completely different way. The numbers clearly speak for themselves. Our local representatives have also been very supportive of this transition to the marketing portal and are happy to take advantage of the opportunity to help shape it.
Thiess Johannssen
Leiter Marketing und Unternehmenskommunikation, Itzehoer Versicherung
1. Aktion planen
Every two months, the headquarters of Itzehoer Versicherung selects appropriate promotional items, taking into account the preferences of its sales partners, and sets minimum order quantities.
2. Aktion veröffentlichen
The pricing tiers negotiated with service providers are displayed transparently on the marketing portal along with the promotional items, so that every sales partner can view the prices based on the total order quantity.
3. Fortschritt verfolgen
During the promotional period, orders from sales partners are compiled. The current order status is visible to all representatives at any time, making it easy to see how many orders are still needed to reach the minimum order quantity or the next price tier.
4. Bestellung auslösen
If the minimum order volume is reached during the promotional period, a consolidated order will be automatically triggered. If the target is not reached, no order will be placed. Regardless of this, the portal offers about ten “evergreen” items that are permanently available from stock at any time.
Our Marketing Portal
Through the marketing portal, local sales partners can now customize, place, and order traditional advertising materials as well as online and offline campaigns. Itzehoer Versicherung alsomanages its entireadvertising cost subsidy—
—through the portal, thereby freeing up valuable resources.
A total of five modules are currently available to the approximately 400 employee representatives:
- Mailing Module
- Large Poster Module
- Mailing Module
- Web Banner Module
- Bulk Order Module
Our Achievements
90 %
Lower inventory costs
thanks to efficient procurement of advertising measures.
50 %
's portal revenue was generated through bulk orders.
18.100 +
promotional items were sold through the bulk order module in 2021.
With the help of the bulk ordering module, Itzehoer Versicherung, as the portal operator, has gained greater flexibility. Corporate design adjustments to promotional materials can be implemented relatively easily and quickly, since there is no need to give away inventory or even throw it away as unusable. As a result, the company is positioning itself as significantly more environmentally friendly and sustainable. Another advantage is the significant cost savings on storage space and overproduction.
Similarly, since the implementation, Itzehoer has been able to reduce warehousing costs by 90 percent. This budget can now be invested in advertising subsidies and the development of the portal. In 2021, 29 consolidated orders involving over 18,100 advertising campaigns were successfully carried out. Fifty percent of the portal’s total revenue was generated through these consolidated orders alone.
