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Smoker Craft x Chessie Marine 5 Whys Analysis - Coggle Diagram
Smoker Craft x Chessie Marine
5 Whys Analysis
Dealers hold excess unsold boat inventory (overstocking)
Chain A: Dealers have the history but it isn't used at ordering time
Why is there excess inventory?
Dealers order more or different boats than they sell. SC builds to order, so unsold stock sits at dealers
Why?
Dealers order on gut feel, past sales impressions, and SC's push. At CM, 3 people confirm orders and the process is largely experience-based
Why, if dealers have sales history?
The history exists but isn't turned into a forward-looking view of what will sell, it's not analyzed. Pontoon process was described as "not very scientific"
Why isn't it analyzed?
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Chain B: Volume commitments reward ordering over selling (incentives)
Why do dealers stock boats that don't sell?
Follow SC's push and commitment targets
Why?
12 month binding contract sets cumulative order targets (30% by June, 60% by Sep, 75% by Dec, balance by Mar), and early orders get free floorplan through May 1
Why does that cause overstock?
Targets are set on volume. CM Andy describes strong boat shows creating demand for models he doesn't stock while the commitment pushes him to keep ordering
Why are commitments set that way?
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Chain C: Stocked mix doesn't match local demand
Why do boats stay on the lot?
They aren't converting to sales
Why?
Mix may not match what local buyers want (type, size, features, price)
Why doesn't it match?
Stock is chosen by instinct and push, not local buyer data
Why isn't local data used?
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Chain D: Volume is committed before demand is visible
Why is inventory out of step with demand?
Orders are committed before the selling season shows real demand
Why?
Peak retail is Januaray to March, but 75% of the year's orders must be in by December
Why so early?
The contract schedule and free-floorplan incentive set the deadlins. Builds take only about 4 to 6 weeks, so production isn't the constraint
Why can't orders adjust later?
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Chain E: Carrying unsold stock doesn't hurt the dealer enough
Why do dealers tolerate unsold boats?
The cost of holding them is low or invisible to them
Why?
On new boats, SC covers floorplan interest, CM doesn't build floorplan cost into individual deal pricing (they review interest at EoY)
Why does that matter?
CM feels the cost where it pays it: it owns used boats outright and calls over-inventory the biggest killer
Why isn't the cost on new boats tracked at the deal level?
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Chain F: Manufacturer can't see retail demand
Why does SC keep pushing models that aren't selling?
Main signals are shipments and orders, plus anecdotal feedback from sales teams, dealers, and customers
Why?
Retail data is late or partial, and SC's lead site (brochure request, third-party run, routed by zip) produces few leads, so CM see none for SC brands
Why?
Customers drop off before submitting, no team manages the site, and marketing doesn't generate enough leads
Why?
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