Supply Chain Blog

FMCG/Pharma Route To Market (RTM) & Jingle Bells

Posted by Dave Jordan on Thu, Dec 19, 2013


Why not make sure your festivities don’t fizzle out as soon as January sales numbers arrive. Get into the spirit of Route To Market (RTM) Distribution right now with our take on Jingle Bells!

Why are sales so low?
I don’t know what to say
We expect to grow
But no, it’s not the way
Emergency bells ring
Makes the bonus light
We will keep struggling
Til we do something right

Oh, nothing sells, nothing sells
Every single day
Oh, how much we have tried
To have Distributors obey
Nothing sells, nothing sells
Enchange showed the way
Now that they’re on our side
RTM works okay

Enchange they did go,
To every partner site,
Strict assessment was done
By colour coded traffic light;
All areas were assessed;
Against defined benchmarks;
Compared versus the best,
But we saw poor marks!

Oh, nothing sells, nothing sells
Every single day
Oh, how much we have tried
To have Distributors obey
Nothing sells, nothing sells
Enchange showed the way
Now they’re on our side
RTM works okay

And now that we know,
Why we do not sell
We have a project on the go
To fix it very, very well;
Partners on our side
We’re showing them they way,
Changes far and wide
Improving by the day,

Oh, nothing sells, nothing sells
Every single day
Oh, how much we have tried
To have Distributors obey
Nothing sells, nothing sells
Enchange showed the way
Now they’re on our side
RTM works okay

That was the way to go
With Enchange by our side
A future that was bright
Soon stopped the sales slide
The cure was free of strife
Slick network now we’ve got
We see a brand new lease of life
Sales and share up a lot

Oh, nothing sells, nothing sells
Every single day
Oh, how much we have tried
To have Distributors obey
Nothing sells, nothing sells
Enchange showed the way
Now they’re on our side
RTM works okay

Christmas RTM Sales resized 600

 

Click here to see our other seasonal offerings.

Click here to see what Enchange can offer your FMCG/Pharmaceutical/Brewing company.

        Image courtesy of Keerati at freedigitalphotos.net                                   

Tags: FMCG, Route to Market, Christmas, Dave Jordan, Humour, Supply Chain, Sales

The Twelve Days of Supply Chain

Posted by Dave Jordan on Wed, Dec 18, 2013

On the first day of Christmas, 12 days of SC Xmas  Small2 copy resized 600
Enchange gave to me 
A robust S&OP. 

On the second day of Christmas, 
Enchange gave to me 
Two fine consultants, 
And a robust S&OP.

On the third day of Christmas, 
Enchange gave to me 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the fourth day of Christmas, 
Enchange gave to me 
Streamlined logistics,
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the fifth day of Christmas, 
Enchange gave to me 
Better bottom line, 
Streamlined logistics,
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the sixth day of Christmas, 
Enchange gave to me 
A suite of KPI’s 
Better bottom line, 
Streamlined logistics,
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the seventh day of Christmas, 
Enchange gave to me 
Lower carbon footprint, 
A suite of KPI’s,
Better bottom line, 
Streamlined logistics, 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the eighth day of Christmas, 
Enchange gave to me 
The RTM Tool, 
Lower carbon footprint, 
A suite of KPI’s, 
Better bottom line, 
Streamlined logistics,
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the ninth day of Christmas, 
Enchange gave to me 
Return on investment 
The RTM Tool, 
Lower carbon footprint, 
A suite of KPI’s, 
Better bottom line, 
Streamlined logistics,
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the tenth day of Christmas, 
Enchange gave to me 
Great Customer Service,
Return on investment 
The RTM Tool, 
Lower carbon footprint, 
A suite of KPI’s 
Better bottom line, 
Streamlined logistics 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the eleventh day of Christmas, 
Enchange gave to me 
Integrated Supply Chain, 
Great Customer Service, 
Return on investment 
The RTM Tool, 
Lower carbon footprint, 
A suite of KPI’s, 
Better bottom line, 
Streamlined logistics 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

On the twelfth day of Christmas,                                                                          Enchange gave to me
APO Implementation
Integrated Supply Chain, 
Great Customer Service, 
Return on investment 
The RTM Tool, 
Lower carbon footprint, 
A suite of KPI’s, 
Better bottom line, 
Streamlined logistics 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

Other seasonal posts:

Oscar Supply Chain Blog

Tags: Christmas, Dave Jordan, CEO, Humour, Performance Improvement, Supply Chain, S&OP, Forecasting & Demand Planning

RTM New Year Sales Tactics for Electronics & Telecoms Producers

Posted by Dave Jordan on Thu, Dec 05, 2013

The year-end Christmas rush is about to gear up once more. Despite the ropey economic conditions people will still find ways to spend as much money as possible – that they don’t have - over the holiday build up and the inevitable “everything must go” post Christmas period.

Those in the detergents and personal products businesses probably do not see much of a peak as people do not really wash themselves or their clothes more often but there will still be expensively assembled gift packs on offer. Nevertheless, FMCG, Brewing and Pharmaceutical Supply Chains will undoubtedly be running under pressure and overtime to ensure the optimum volume/value is delivered. This is more concentration in demand than a real stand alone peak event.

Food and drink producers experience a real peak as consumption undoubtedly rises with all the celebration and entertaining events but how much of what is bought is actually consumed? Excess fresh food is destined for the waste bin and immediately off the demand radar but non-perishables can hang around for weeks and months belatedly popping up and upsetting carefully crafted demand algorithms.

Electronics and telecoms producers certainly experience a real peak as the latest gadgets and must-haves are wrapped and gifted to friends and relatives. Of course, everyone knows that all these gadgets will soon be superceded by better/cheaper/faster models but that is a fact of electronics retailing these days.

If the purchasing public actually organised a co-ordinated effort then I see a major risk for the electronics producers and what a shopper coup this would be! Despite knowing that their new state of the art gizmo will be considerably cheaper in the post Christmas sales a vast majority of people still buy in advance for giving on the big day itself. I understand the behaviour but so too do the electronics producers and their retailer cohorts who make a profit at whatever the selling price.

New Years SalesIf everybody and I mean everybody - no dissenters - refused to buy electronic items in the build up to Christmas how would producers and retailers react? Would inflated prices be maintained and taken out of New Year sales campaigns or would they enter into a game of bluff with consumers?  Who would crack first in that instance? Would consumers give up and decide they need that must-have telephone or tablet at any price? Would producers and retailers realise that they need to shift this stock as it will upset the innovation flow out of NPD?

This stock has to move out. Yes, the stock could be downgraded and sold in different channels or in different countries but in that case a large quantity of expected revenue is lost. Year end targets that have been promised and re-promised will not have been achieved and working capital that is losing allure by the day will be on the books into the new financial year. Will sales prices eventually be advertised even if the offers are not as low as expected?

I know such a co-ordinated consumer campaign is unlikely to get off the ground as the desire to give in a timely fashion outweighs the potential savings even though there can be several hundred Euros involved.

Those countries and cultures with Christmas celebrations taking place in early January really do have an advantage, don’t they?

Tags: Route to Market, Christmas, Dave Jordan, Performance Improvement, Telecoms, Forecasting & Demand Planning, Sales

FMCG: Sales & Marketing activity planning horizons

Posted by Dave Jordan on Wed, Dec 04, 2013

Once more I delve into the TV of my youth and bring you the Goodies singing “Make a Daft Noise for Christmas” containing the classic line “Christmas comes but once a year, and when it does, it’s absolutely shocking.” Will this be the case for your business?

We are suddenly in December but is there light at the end of the tunnel for FMCG businesses closing their books at midnight on 31st? Unfortunately, the light in the tunnel is Christmas and a New Year approaching at the speed of a Japanese bullet train and you are powerless to get out of its way.

By now you should know what your year-end figures are going to look like. Will you look forward to the annual appraisal after a successful year or will you be hoping the boss drinks far too much mulled wine and suffers a lengthy amnesia lasting until after the paperwork is complete?  

Established companies find it difficult to plan in advance so it is no surprise very few consumers are any better at planning their holiday shopping. Yes, you will always get Mr. & Mrs. Boaster telling anyone who will listen, “we finished our shopping in October”. They probably did but in all likelihood this actually means they don’t bother buying anything festive and nobody visits them anyway.

FMCG Christmas Activity Planning resized 600December may well have 31 days but for many FMCG companies there are fewer selling opportunities even in today’s open all hours, 24/7 retail culture. There is so much competition for the consumers’ money and especially from non-FMCG items. While your top selling SKU may well be a shoppers “first in the basket” priority in the summer when it comes to Christmas there are so many other shiny and more exciting things to purchase.

Key to your seasonal success will be how robust are the sales & marketing activity plans. Do you have a rolling forward plan covering at least the next 12 months and preferably 18 or longer? This is a discipline still foreign to most sales and marketing departments but it is vital the process exists within S&OP and is rigorous.

Christmas has not moved in the calendar for some time and if you have a short planning horizon you do not allow the Supply Chain to focus on the inevitable promotional peaks the holiday season brings. Suddenly a huge year-rescuing promotion is announced which provides the rest of the business insufficient time to prepare properly. The ensuing execution is usually incomplete, late, and not ideal and overall, a waste of valuable above/below the line spending.

Nobody expects 100% accuracy on a forward looking 18+ month plan but many elements are usually annual events which are refreshed on each occasion. Neither is the process complicated and even a dreaded Excel spreadsheet can be used.

The key benefit is that everyone in the business knows there will be a promotion on a certain range which will require X levels of extra stock to be in place on time. Modification can always be made tactically but changing your promotion from dark chocolate Santa’s to white chocolate reindeer at short notice just will not work.

If you do not have a sales and marketing plan with a significant planning horizon then it could be the best gift you can give to your company this Christmas.

Image courtesy of Boians Cho Joo Young at freedigitalphotos.net

 

Tags: FMCG, Dave Jordan, CEO, Supply Chain, S&OP, Forecasting & Demand Planning, Sales