Supply Chain Blog

An FMCG Distributor Is For Life: Not Just For Christmas

Posted by Dave Jordan on Wed, Dec 21, 2016

Ok, so you are unlikley to see this on a car bumper sticker but FMCG Distributors will have a significant impact on your sales performance, probably your variable pay bonus and therefore your CEO aspirations! How have you treated your Distributors this year? Were they the usual pain in the proverbial - failing to achieve targets, not paying on time, always moaning about trading terms? Of course, some Distributors do fit this stereotype but others are keenly trying to be treated as and to be, equal partners in your business success. But do you see this?

How are things going in Q4? Have you fallen into the trap of the “sales bonus push”? Year end stock clearance FMCG Breaking all the supply and sales phasing rules you have been trying to drum into Distributors? Did you strictly maintain discipline on Sales & Operational Planning or did the last quarter deteriorate into a “sell whatever we've got in the warehouse” scenario?

Companies that spend time and effort in proactively guiding their Distributors, providing relevant training and support inevitably succeed in the market place. Yes, at the end of the day Distributors have to stand on their own two feet but so many FMCG companies assume an organisation calling itself an “FMCG Distributor” inherently knows how to properly support any specific business.

If you do not pay attention to the Traditional Trade (TT) distribution side of your business then you are asking for trouble and that trouble usually ends in divorce along with all the discontinuity baggage separation brings. You need to avoid your choice of Distributors becoming like the English Premier League where managers get about 5 minutes to make an impact before being shown the door. (Strange though, that all these football managerial failures usually find another highly paid role.)

So, as we approach a special time of the year why not think about your Distributors and ask yourself if you have given them a fair crack of the whip?  If not, then you might consider a New Year resolution to develop a strategy for mutual success. This is far better than continually highlighting deficiencies and using backward looking, discipline focussed KPIs to bash them on the head.

Sit down with your RTM Distributors regularly, evaluate their strengths and weaknesses and agree to do something about the latter. Simply running through a Route To Market evaluation together can work wonders in establishing trust and cooperation. Do yourself a favour and do this now before Q1 next year also becomes history.

Click on the RTM link below and go!

CTA RTM Free Download resized 600

Image courtesy of stock.xchnge at freeimages.com

Tags: FMCG, Route to Market, Dave Jordan, CEO, Performance Improvement, Supply Chain, S&OP, Distribution

The Twelve Days of Supply Chain 2016

Posted by Dave Jordan on Mon, Dec 19, 2016

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 
SupplyVue Analytics
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, 
SupplyVue Analytics
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, 
SupplyVue Analytics
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, 
SupplyVue Analytics
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, 
SupplyVue Analytics
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, 
SupplyVue Analytics
A suite of KPI’s, 
Better bottom line, 
Streamlined logistics 
An ERP go-live,
Two fine consultants, 
And a robust S&OP.

Have you got your breath back? Finally, we wish you a very Merry Christmas and an increasinly prosperous New Year!

Image courtesy of Nora Ashbee at Enchange.com

Other seasonal posts:

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

Santa & Opening Presents - S&OP Putting Elves in their place

Posted by Dave Jordan on Wed, Dec 14, 2016

Dear Mr. K Ite,

Thank you for your very short note highlighting some minor points; I can see you are a little aggrieved. On behalf of "Mr Claus I will attempt to minimise your apparent unease with the S&OP process in the context of the very small print in your members employment conditions.

I think we have to manage expectations here. I know your members play an important role in the Christmas S&OP but as far as I am aware there are very few (if any) Christmas songs about Elves. Let me see now:

Dashing through the snow in a one elf open sleigh….I think not!

Good King Elf looked out of the feast of Stephen…..no, not there either.

Rudolf the red nosed elf….not quite eh?

You do not even get a mention in the all encompassing 12 Days of Christmas!!!

Your members are lucky to have assured contracts which guarantee employment every year without fail. Unless the world runs out of children I think we can safely see continued employment into the future. The green hats were part of the 2009 collective bargaining agreement where we agreed to new hats every 5 years instead of the industry standard of every 10 years. You will recall we reversed out decision to change colour of the hats to pink at the same time.

Santa and S&OP Planning Cylcle

The employment market is currently very tough and I urge you to communicate to your members the difficulties you will cause should you withdraw your labour. We are unable to pay you for doing nothing for 46 weeks of the year and I am sure you would agree with this. Frankly, if this is what you and you members expect then I suggest you apply to join the Marketing Department.

Finally, I address your comment on S&OP specifically. In our industry planning is everything to ensure we keep the children happy AND do not enter January with excess stock nobody wants. If you want to see what can happen when you get the planning wrong in our kind of business please check out Vuvuzelas and the Value of S&OP.

I am sure you will communicate our position to your members.

With chilly regards,

Mr. I Cicle

 

Tags: Christmas, Dave Jordan, Supply Chain, S&OP, Forecasting & Demand Planning

Santa & Opening Presents - S&OP is Invaluable at Christmas

Posted by Dave Jordan on Fri, Dec 09, 2016

“Dashing through the snow
In a one horse open sleigh…”

How many of you started to sing then? Yes, the festive period is fast approaching and the biggest and best Supply Chain in the world is almost ready to activate. This is always the most efficient Supply Chain whatever Gartner may say.

There is no way Santa Claus could achieve his annual success without sticking rigidly to an S&OP process, i.e. Santa & Opening Presents.

The process starts every year on the 26th December just as children start to play with the empty packaging instead of their much sought after gifts. Their engorged parents lounge sleepily in front of the television watching The Great Escape or Jason & the Argonauts – again! The loyal Elves are given their end of season bonus and packed off back to Eleveden Forest in Suffolk. Didn’t you know that is where they live for most of the year?

Before January is over those lovely people who design toys and games quickly introduce new and more exiting models which will become must-haves for countless girls and boys. Toy shops are visited and millions of children quietly note those presents they would like Santa to bring them this year. The demand slowly builds until it is time to bring the Elves back from Suffolk on the eleventh day of the eleventh month – no coincidence there! The first job for the Elves is to get the huge Christmas factory ready to run once again.

santas_sop_planning_cycle_small.jpg

In parallel with this, millions of children around the world unzip their pencil cases with a purpose. Using their best handwriting they tell Santa they have all been well behaved this year and then  list all the presents they would like to receive. This accumulated demand allows the Elf factory to start making production plans to meet a deadline that is set in stone. Is there a peakier peak period?

Money does not grow on trees so “Santa” must quickly check what can be afforded from the budget. Remember, the wish lists are always too long and you do not want 100% Customer Service  – keep “em hungry”, I say. The Pre-S&OP takes place with all stakeholders involved to ensure everything is ready to go. You want to avoid stock-outs just as much as you need to avoid expensive write-offs.

After necessary adjustments are made to the planned volumes by SKU the final S&OP takes place. Bearded Santa is fully dressed in his best red uniform and takes his seat. If Pre-S&OP actions have not been carried out, then there is unlikely to be much “Yo Ho Ho-ing”. Fortunately, everyone is in agreement and the final set of child and associated gift numbers is rubber-stamped. Everyone involved in the Christmas S&OP must operate on the same set of numbers or somebody will be disappointed.

The big day comes and Rudolph leads the reindeers in pulling the delivery sleigh across the world in a complex logistical challenge. Santa makes sure all the presents are delivered on time before little heads lift from pillows to wake parents at 4am! (Well, I did.)

 “Dashing through the snow
In a one horse open sleigh
O'er the fields we go
Laughing all the way
Bells on bob tails ring
Making spirits bright
What fun it is to laugh and sing
A sleighing song tonight”

Before you know it, there we are again on 26th December and the same robust and reliable S&OP cycle starts once more. See you next year Sant

Image courtesy of Enchange Ltd at Enchange.com

 

 

 

 

 

Tags: Christmas, Humour, Supply Chain, S&OP, Logistics Management

Case Study: FMCG (Friendly Man Carrying Gifts) RTM (Reindeer To Market)

Posted by Dave Jordan on Wed, Dec 07, 2016

Client :         Santa Claus aka Father Christmas, Kris Kringle, St. Nick or simply Santa

Market:        A large part of the World

Scope:          FMCG Reindeer Route To Market Distribution

Deliverable: Evaluation of RTM against sector benchmarks

table xmas.png

In summary, this Enchange project delivered:

  • A detailed evaluation of the Christmas RTM deployment highlighting strengths and weaknesses.
  • A grading of each core element in terms of capability to deliver the presents in comparison to benchmarks.
  • A framework development plan for parents and Santa Claus.
  • A clear business case for the continuation of Christmas. 

We would like to thank Mr. S. Claus for allowing us the opportunity to evaluate this important Reindeer To Market network. The network is in very good condition and we wish him every success on the 25th December.

Give your FMCG business a Christmas present and evaluate your Friendly Man Carrying Gifts (FMCG) Reindeer To Market (RTM) network. Need help with your RTM deployment? Click here and we will give you a call.

Santa image courtesy of stock images at freeditialphotos.net

                                               Other seasonal Yo Ho Ho posts:

FMCG_RTM_SUPPLY_CHAIN_HUMOUR.jpg* Santa & Opening Presents - Why S&OP is Invaluable at Christmas
* The Twelve Days of Supply Chain

Tags: FMCG, Christmas, Humour, Supply Chain, RTM

Logistics Outsource Tendering in CEE - Top 7 Hazards

Posted by Dave Jordan on Wed, Nov 16, 2016

This process can be straight forward but a little extra care and knowledge will ensure you achieve the best warehousing and/or transport solution for your business.

Just a quick reality check, do you need to outsource? Before embarking on a complicated and potentially disruptive tender are you convinced your current in-house operation is unsuitable? Think long and hard about outsourcing or you could be trapped in a long-term relationship with someone who may not care about your business as much as you.

Assuming you have taken the correct decision let us look at 7 things that can go wrong.

1. Process Leadership If possible, appoint a leader from outside of the Supply Chain team, e.g. Finance. This will promote impartiality and in any case, many of the key debates will be in the Finance area. For complete impartiality, you might consider hiring an experienced Interim Manager or Consultant who has no long term interest. All contenders will be trying to pick up snippets of advantageous information and you must not compromise the tender process in any way.

2. Qualification. Get an idea for which companies are likely to be interested in and capable of being your 3PL partner. Do not be surprised if your list is relatively small but you should aim for 8-10 contenders in this first sweep. Contact these companies with a questionnaire asking them to outline their capabilities, pedigree and reputation in your geography and follow this up with a face to face meeting where you can get a better feel for competence and commitment.

3. Cost Comparison. Outsourcing is not always about cost reduction but the costs of the 3PL contenders will be a major element in the decision. Ensure you know your accurate current costs for the entire service you are expecting the 3PL to provide. You need transparency on your own cost structure to make a valid and meaningful comparison.

4. Time Expectations. Don't rush the process despite the pressure from above (or below) to make a change. You will be reliant on your 3PL to support your business so make sure a timetable is agreed with all stakeholders, including your own Supply Chain people. The tender process will not be a secret however hard you try and your people will be nervous. The changeover should fall in a slack period so avoid your seasonal peaks and major promotional periods.

5. People. If you are outsourcing your existing in-house Logistics function, then you are either going to make several staff redundant or you will be looking for the new 3PL to take those staff on board. Either way you must treat people in the best way possible or your service levels will suffer as you make this difficult change.

supply_chain_3pl_logistics_transport.jpgIf you are making staff redundant you must keep them fully informed at each critical step. Why not consider an escalating loyalty bonus linked to performance? If existing staff members are being offered the opportunity to join the new 3PL then it is your responsibility to ensure terms and conditions are fair. From experience in CEE it is wise to build a "parachute" agreement into the new contract ensuring existing terms and conditions are maintained for a period of say, 12-18 months.

 

6. Beware of well- meaning Distributor partners trying to step up to the mark as a 3PL and be similarly aware of any of the big names who are not present locally but "expect to be". This means they are unlikely to enter your market unless they get your business and you will not appreciate being their new guinea-pig!

7. Start-up Phase. Ensure your tendering process includes a clear understanding of what will happen as the business is transferred. How soon will KPI's be at the required level? Does the 3PL have the necessary staff with relevant skills, e.g. narrow aisle FLT drivers. Do they have extra FLT batteries than can be swapped to maintain the operation? Has the WMS been robustly tested? Do they have sufficient trucks and drivers?.........Even some of the big name 3PLs make mistakes at this crucial time.

Taking care of these 7 elements will help you move through the all-important implementation phase to a steady business state without surprises.

Some 3PLs tend to be very slick at securing new business but some of them are not very good at keeping it!

Want to know more about logistics in the CEE region?  Check out these posts too!

Logistics: Working With 3rd Party Logistics Providers in CEE 

Working With 3PLP's in CEE - When did you last see your stock count?

Top tips to improve your cycle counting & avoid suffering stock shock 

Image courtesy of Stuart Miles at freedigitalphotos.net

Tags: Customer service, Logistics Service Provider, Supply Chain, Cost Reduction, Transportation, 3PL

Supply Chain Analytics: Is your data providing information & actions?

Posted by Dave Jordan on Wed, Nov 09, 2016

Who coined the term “Big Data”? How did we get there without tiny data, ordinary data, slightly larger data, chubby data and bordering on big data? People working in or associated with Supply Chains seem obsessed by data yet data itself tells you absolutely nothing. Really, not a lot apart from the fact that something is being measured or calculated.

Firstly, a couple of information irritations. If you need to renew your UK passport (must be similar for other countries too) you need to have your identity confirmed by someone in a certain profession, e.g. doctor, teacher and be a person of “good standing in their community”. The allowed list of professions includes Bankers which baffles me these days. Anyway, the signatory must provide information confirming your identification and you get the passport. Information and not data gets the job done.

 

My bank writes to me – note, sends me a physical letter – asking me to confirm my address! “If you know where I live why do I have to call you to confirm what you already know?” TINA as Maggie Thatcher would say, there is no alternative so you must bite your tongue and provide the information.

In Supply Chains the data obsession is growing. “Show me the data. How does the latest data look? Will the data protect my backside?” Data is only valuable if you know what it is measuring, what it means and what you need to do to change or influence an aspect of future business performance. For data to be useful it must be converted into useful information and then into appropriate actions.

Someone is shouting “data is information isn’t it”? Well, no it is not and as Michael Caine insists he never said, “not a lot of people know that”. Consider this example.

Due to some poor forward planning by the travel department you find yourself airborne for the duration of a vital end of season relegation encounter. On leaving the plane you ask an airport worker about the big football game. All he/she can tell you is that 4 goals were scored. Is that helpful?

CANALYTICS_SUPPLY_CHAIN_DATA_INFORMATION.jpgertainly, the match sounds like it was entertaining but your overpaid wimpy football idols needed a win. The data you have been given is 100% accurate but it does not actually tell you anything about the outcome. Was it 2-2, 3-1, 1-3 or even a diabolical 4-0/0-4?

When you understand the final score was 3-1 in favour of your football wimps you are elated and think about kissing the moustachioed guy at security but back down just in time – that metal detector sausage could cause some damage. Instead of being as sick as a parrot you are over the moon, y’know what I mean?

You have converted that raw goals scored data into information and then into celebratory actions. In terms of actions this means you have wisely decided against kissing the Village People lookalike security guard to head off to quaff several pints of the foaming ale. When you only had the 4-goal data you had no idea of the outcome.

Increasingly you need to turn to analytics to understand what is actually happening in your Supply Chain why it is happening and most importantly, what needs to change for future business success.

Image courtesy of ddpavumba at freedigitalphotos.net

Tags: Supply Chain, Inventory Management & Stock Control, Supply Chain Analytics, IT

FMCG Company disbands the Supply Chain function……..

Posted by Dave Jordan on Wed, Mar 23, 2016

I am back on line again after a few days’ holiday post completion of some challenging factory footprint project work. One of the first catch-up meetings I have had was with an FMCG CEO. No names of course, but this is a medium-large sized player knocking on the blue-chip door. The company has a broad European supply network and is present in most markets. I have disguised the identity to protect the innocent or not so innocent!

I recall how many companies plodded along blindly with what we now accept as supply chain functions dispersed around other departments, e.g. procurement/buying and logistics in finance, planning with sales – I, along with many, am so pleased that the latter is no longer the case!

Many years flew by before all the essential elements of supply chain were brought under one organisation. Looking backwards now, it hardly seemed like rocket science but it was a painful process as established empires were dismantled and begrudging recognition given to what is still an undervalued function in a large number of companies. How many actually have a Chief Supply Chain Officer even now?

Although many were dragged kicking and screaming into the newly created function, there is no doubt those companies operating an integrated supply chain have seen huge benefits over succeeding years. Nothing happened overnight of course, as slowly but surely companies made massive strides in understanding cost, efficiency, service and innovation. Is it naïve to believe that supply chain is now considered equally important as say finance or those darlings in sales? The jury is probably still out on that one.

FMCG_SUPPLY_CHAIN_CEO.jpgSo, you could imagine my jaw dropping onto the worn leather inlay of the table when I heard from Mr./Mrs. CEO that this company had taken the decision to dissolve their supply chain and relocate elements across the other departments. The Supply Chain Director role just vanished off the top table in one fell swoop. Without doubt, there must be a leading edge reason for this bold and brave (yes, insert “crazy” or “stupid” or “daft” as you wish) move and I waited for the disclosure of the divine inspiration and associated logic.

No, there was none on offer in my humble opinion. The insight behind the decision was that the company wanted more direct board control over various areas of business and believed that a dispersion of roles was required. The fact that segregation of roles is necessary for auditable control and accountability has been at best over-looked let alone the impact on business performance.

The only outcome is a lack of cross functional clarity on how the Supply Chain contributes to business performance excellence. A return to functional silos where people will not take responsibility or be accountable and resort to lobbing blame-grenades over the office walls.

Why would you make such a decision? What are they really hiding from? Answers on a post card please as this one beats me. I am not suggesting supply chain development has finished and we have the ultimate design (far from it) but reverting to a disjointed 1980’s model in an effort to improve control is a contradiction.

Image courtesy of Stuart Miles at freedigitalphotos.net

 

Tags: FMCG, CEO, Performance Improvement, Supply Chain

Why S&OP and IBP are invaluable all year round but especially at Christmas

Posted by Dave Jordan on Wed, Dec 09, 2015

All rather too quickly Noddy Holder is already gargling on the festive gravel. Roy Wood and Wizard are wishing we could grossly over eat and drink on 365 or 366 days of the year and although they never met, Bowie and Bing are dueting about peace on earth – a likely story in today’s world.

Together with the usual sincere festive releases from talentless “celebrities” from reality TV we also hear some old favourites.

“Dashing through the snow
In a one horse open sleigh…"

How many of you actually started to sing then? Yes, the festive period is fast approaching and the biggest and best Supply Chain in the world is almost ready to activate. There is no way Santa Claus could achieve his annual success without sticking rigidly to an S&OP or IBP process, i.e. Santa & Opening Presents or Incoming Boxes of Presents.

The process starts every year on the 26th December just when all the children start to play with the empty Christmas wrapping and packaging instead of their much sought after gifts. Their engorged parents lounge sleepily in front of the television watching The Great Escape or Jason and the Argonauts – again! The loyal Elves are given their end of season bonus – taxed of course - and packed off back to Eleveden Forest in Suffolk. Didn’t you know that is where they live for most of the year?

Before too long, those lovely people who design toys and games quickly introduce new and more exiting models which will become must-haves for countless girls and boys across the globe. Toy shops are visited and catalogues scanned as millions of children quietly note those presents they would like Santa to bring them the following Christmas. Demand slowly builds until it is time to bring the Elves back from Suffolk, UK on the eleventh day of the eleventh month – no surprise there! The first job for the Elves is to get the global and regional toy factories ready to run once again.

SOP_Planning_Cycle.jpg

 

In parallel, millions of children around the world unzip their pencil cases with a purpose. Using their best handwriting they tell Santa they have all been well behaved this year and then they list all the presents they would like to receive. This accumulated demand allows the Elf factories to start making production plans to meet a deadline that is set in stone and stuffing and snow.

Money does not grow on trees so “Santa” has to quickly check what can be afforded from the budget. Remember, wish lists are always too long and you do not want 100% Customer Service  – keep ‘em hungry I say – or too much inventory. The Pre-S&OP takes place with all stake holders involved to ensure everything is ready to go. You want to avoid stock-outs just as much as you need to avoid expensive write-offs.

After necessary adjustments are made to the planned volumes by SKU, the final S&OP meeting takes place. Santa is fully dressed in his best red uniform and takes his seat at the head of the table. If Pre-S&OP actions have not been carried out then there is unlikely to be much “yo ho ho-ing”. Fortunately, everyone has completed their tasks and there is agreement before the final set of receiving child and gift numbers is rubber-stamped. Everyone involved in the Christmas S&OP/IBP must operate on the same set of numbers or somebody will be bitterly disappointed.

The big day comes and Rudolph leads the reindeers in pulling the sleigh across the world. Santa makes sure all the presents are delivered on time before little heads lift from pillows to wake parents at 4am! (Well, I woke mine at that time.)

And before you know it there we are again on 26th December and the same robust and reliable S&OP/IBP cycle starts all over again amongst the discarded wrapping. See you next year Santa.

“Dashing through the snow
In a one horse open sleigh
O'er the fields we go
Laughing all the way
Bells on bob tails ring
Making spirits bright
What fun it is to laugh and sing
A sleighing song tonight” 

 

Tags: SKU, FMCG, Dave Jordan, Supply Chain, S&OP

FMCG: What does S&OP bring to the party? Sales success of course!

Posted by Dave Jordan on Thu, Sep 17, 2015

During my recent travels I met with two Sales (or Business Development Directors if you’re posh) from well known FMCG companies to discuss an assessment review of their Route To Market (RTM) networks. Surprisingly, neither was interested and gave a remarkably aligned reason for the rejection. “All this does is raise Sales In and we know how to do that already”. Oh dear!

No, Nein, La, Nu, He, Nem, Không có!!! Whatever language you choose to use, this understanding of an RTM assessment review is flawed. There is no doubt Sales Directors across the globe know how to increase Sales In and frankly it is not that hard is it? You can use promotions, discounts, extended credit, BOGOF, sale or return etc, etc. Unless you are regularly working on a knife edge with out of stocks (OOS) at the Distributor, pushing Sales In does not guarantee one single extra sale, not one single piece.

Without a focus on Sales Out any stock pushed into an RTM network is likely just to sit in Distributor warehouses as there is no obvious consumer pull or demand. The Distributor is sitting on plenty of valuable stock but without a pull from the trade all this extra pushed stock is wasted. One of the key drivers for a push strategy is the alignment of Sales In targets with Sales Team bonus payments. Once the stock has moved out of Producer hands it is considered a “sale” and this is simply not true in the cold light of day. Nothing is actually sold until a consumer has handed over their hard earned cash at the till.

FMCG_RTM_SALES_UPLIFTThe beauty of an RTM Assessment is that it addresses how to achieve a Sales Out uplift and every assessment with which I have been involved has achieved such an uplift! If you get close to your Distributors and develop a lasting relationship you will be able to get more out of the market – even in this recession which seems endless.

Partnership – treat Distributors as equals as they are an integral part of your Traditional Trade business whether you like it or not. Hold regular meetings at the right levels and ensure the discussion is a real two-way process.

Planning & Logistics – do not assume Distributors know how to aggregate demand by SKU to form a demand forecast. If their forecast is more accurate then this gently ripples right back to you own factory and procurement activities.

Sales/Order Management – provide training to ensure your face to the customer is professional and competent. Ensure orders are captured promptly AND that stock is available to promise.

Finance & Back Office – is the Distributor financially sound and capital efficient? Do they recruit and retain the right calibre of people and are they rewarded fairly and sensibly?

This is just a snapshot of a what a comprehensive RTM assessment review delivers and more can be found here.

If you are struggling to make your 2015 numbers you might find that Q1 2016 presents an extremely difficult start to the year. A thorough review of your RTM Distribution network could be just what you need to make up ground in the following months.

A real uplift in FMCG sales is there for the taking!

Image courtesy of samuiblue at freedigitalphotos.net

Tags: FMCG, Route to Market, Supply Chain, Sales, RTM Assessment Tool