Transshipped At A Cost
"We have 60 years wrapped up in the reputation of this brand. It was the right thing to do," he says. "Financially, it's not such a hot thing. We're going to spend a lot of money to do this, and the result so far is that we lost $6 million in business this year. Economically, it's pretty hard to explain this decision." But he refers to Klipsch's 60 years. "We've got dealers that have been out there for decades supporting this brand. We just decided it was the right thing to do to support this business at this time."
A manufacturer's efforts to stamp out transshipping means nothing if its supply chain consistently delivers too much product into the channel. At Klipsch, Mike Klipsch says, "We're making major investments in our logistics chain: On how we deliver product, to do it more frequently, with better forecasting, and provide tools online for dealers to be able to check the status of all orders, check the status of all invoices, check the status of inventory levels. It's been a two-year investment in getting that all set up on our Web site [klipschdealer.com], and it's been very well received."