Sales & Distribution Strategy
The client was a USA based beverage manufacturer who utilized DSD (Direct Store Delivery) as its sales and distribution model. The client desired to position the business for accelerated growth on a national basis and wanted to understand options for optimal performance of sales, distribution, and merchadising of products. The assignment was to develop strategic improvements to the sales and distribution model, quanitfy risks, and gauge the implementation effort required to realize the benefits.
ILLUMINATE
The initial project meeting with the senior leadership team and the project steering committee revealed a lack of understanding and alignment about the value of the Direct Store Delivery Model. In fact, there was significant finger-pointing between the operations, sales, and distribution functions. This led to a workshop to educate functional leaders on business realities and drive alignment toward change requirements. Then, fieldwork and data analysis began.
NAVIGATE
The client’s business processes were exhaustively compared to industry best practices. An extensive financial analysis quantified the opportunity of changing from current processes to improved, or new, business practices. Many of the client’s leaders were new to the DSD model – our practical experience was leveraged to educate and solve problems simultaneously.
ACTIVATE
The project resulted in multiple efficiencies and revenue growth. Time savings at stores translated into labor and fleet cost savings. Activation of tools, such as scan based trading, with select customers drove expanded distribution and sales revenue. Adaptive supply chain practices were implemented within the existing model to eliminate non-essential retail activities while increasing customer service, resulting in a +11% increase in sales in pilot.