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Route to Market & Supply Chain Blog

The Step-by-Step Guide to Deliver World Class FMCG Distributor Performance

Posted by Ross Marie on Thu, Apr 08, 2021

In my last post we discussed the biggest challenges that a Consumer Packaged Goods (CPG) company could face when managing the ‘last mile’ of the Route to Market (RtM).

Once we have examined the challenges and the pitfalls in managing distributors or in delivering excellence in RtM distribution, next on the agenda is the need for an approach or strategy to drive and develop distributor performance.

Distributor Partner Development ProgrammeThe approach that we use at Enchange is known as the Distributor Partner (DP) Development Programme. We use this approach to train FMCG RtM or Distributor Managers, to drive and improve the performance of individual distributors and to implement a new FMCG company approach to DP development.

The programme has eight modules, in three key stages. Here is a top line overview of the Distributor Partner (DP) Development Programme:

 

STAGE ONE: INTERNAL PRODUCER FOCUS

The goal of Stage One is to ensure that there is clarity within the FMCG Company (the Producer) regarding the goals that can and must be achieved, and what type of partner is needed to deliver these goals.

The modules involved are:

  1. Producer RtM Strategy - Ability to translate Producer RtM goals into localised DP capabilities and actions.
  2. Model Distributor - Understand and define what Geo-specific Best-in-Class distribution looks like.

STAGE TWO: DISTRIBUTOR PARTNER FOCUS

The goal of Stage Two is to look across the distribution landscape at the potential options available, to choose the right DPs and then to focus on driving and improving the key components of their operations.

The modules involved are:

  1. Distributor Assessment - Ability to identify and rank the best DPs.
  2. Distributor Partnership - How to build a joint approach for sales and profit growth.
  3. Planning & Logistics - How to improve DP operations.
  4. Finance & Back Office - Understand credit risk & financial health of DPs.

STAGE THREE: EXECUTION FOCUS

The goal of Stage Three is to translate the producer RtM Strategy into execution, and to ensure that the DP and the FMCG Company have the necessary skills, tools and resources to deliver the specific agreed Joint Business Plans (JBP) and Joint Action Plans (JAP).

The modules involved are:

  1. Sales Management - How to drive DP sales performance.
  2. Execution JBP & JAP - How to harness the best in DP execution.

CPG Distributor Partner Development Programme Step by Step

Over the next number of weeks, I will discuss each module in more detail, which will allow you to understand the details of what you must do to improve distributor management to deliver excellence in RtM distribution execution.

What should you do now?

Tags: FMCG, Route to Market, Logistics Service Provider, Performance Improvement, Traditional Trade, Sales, Distribution, RTM Assessment Tool, Order to Cash, Retail, RTM, Ross Marie, RtM Strategy, 20 Steps to RtM Excellence