Sibco has transformed its sales and distribution operations between 2009-2016 through several initiatives:
1) It launched pre-selling in traditional trade in 2009 and rolled out programs to strengthen its frontline team, distribution infrastructure, and technology systems like tele-sales and dynamic routing.
2) By 2016, Sibco's sales mix had shifted to 91% pre-sell and 9% DSD, covering 24,000 customers through 297 delivery routes.
3) Key accomplishments included expanding tele-sales, upgrading fleet and technology, and rationalizing headcount to focus on frontline growth and efficiency improvements like dynamic routing.
1. SIBCOTRANSFORMATION&CAPABILITY
Making it happen 2009-2016
Distribution
Infrastructure
People
Sales &
delivery
GTM
operations
Technology
Market Size =24K customers
Pre sell Routes= 144
DSD routes= 44
Total distribution fleet=255
Total delivery routes =220
2. • 2009- Launched Pre sell inTraditionalTrade
• 2011- Roll out “Own your LRB Route”
• 2012- Roll out ATU across all regions
• 2103- Sibco new fleet plan for delivery operation
• 2014- Roll out LN implementation across all regions
• 2014- Launched tele sales in Jeddah base market
• 2015- CommissionAutomation
• 2015- Market Data management roll out
• 2016- Front line competencies analysis.
• 2016- Head count rationalization
• 2016- Dynamic routing .
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
3. 0
20
40
60
80
100
2013 2014 2015
56
13
9
44
87
91
SIBCO GTM 13-16
DSD Pre sell
91%
9%
Pre sell DSD
82%
18%
Delivery DSD
76%
24%
Pre sell DSD
Sales Mix % Route Mix%
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
4. Sibco S&D system operated 437 total routes , 297 delivery &DSD routes covered
all channels.
Additional Hajj routes were used to cover Makkah & Madinah distribution .
Sibco GTMTransformation 2016
0 50 100 150 200 250 300
June
July
August
September
144
144
144
140
222
220
249
253
45
44
44
54
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
5. Jeddah Makkah Madinah Taif Yanbu Tabouk Total
61
28
24 17 5 5 140
28
13
2
6 4 4
54
91
95
35
20
6 6
253
PS DSD DLV
Sibco GTMTransformation 2016
• 45 Hajj routes were operated in Makkah.
• Total 140 pre sell routes were operated trough out Sipco
• Tele sell route remain as 19.
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
6. Sibco GTMTransformation 2016
1203
887
1090 1186 1177
533
372
487 543 613
0
500
1000
1500
May Jun Jul Aug Sept
Sales/truck
DLV DSD
1254
986 1058 1272 1276
1755 1530 1630
1978 1819
5416
4082
6033
6905
6452
0
1000
2000
3000
4000
5000
6000
7000
8000
May Jun Jul Aug Sept
PS – Order Productivity
PS -TT PS-OT PS-WS
• Delivery returns
are 3% in Sept-
16
Order size has
changed post
Hajj season
• Fleet
capacity
utilization
is up by
15%in
Sept-16
• Sa;es per truck improved in DSD by 13%.
0%
10%
20%
30%
40%
April May Jun
Jul
Aug
Sept
23%
21%
31%
21% 23%
18%
3% 3% 3%
3%
3%
3%
RETURN-%AGE
DSD DLV
0
200
400
600
800
1000
1200
April May June July Aug Sept
857 857 860 862 858 857
1015 1015 1015
1087
800
989
1.18 1.18 1.18 1.26 0.93 1.15
CAPACITY USAGE
Capacity Actual %UTL
7. SibcoTele Sales Sept-2016
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
Jan Feb Mar April May Jun Jul Aug Sept
Sales trend -2016
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Jeddah Makkah Madinah Taif
OP
RB
Traditional
26727
10410
Calls Analysis
CC
C D
TS productivity
• Avg sales per TS 12.K in Sept-16
• Op channel sales 25K in Sept.
Customer Base
CD:CC=2.6
Sipco is serving 3803 customers throughTele sales.
• Weighted customers moved to tele sale impacted volume
84%
11%
5.0%
• Traditional Trade contributes 84%
• OP has 11% contribution
• RB adds 5% of the total volume
CSD
93%
NCB
3%
AQU
4%
Sales
16757
13158
15458
14898
10266
11809
14823
13111
25064
12334
2180
2002
20799
26954
3131
7643
9758
338
6497
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
8. C-5C-4C-2 C-3C-1
SIBCO
ERP
ROUTE
PRO
LOAD
ROUTE
JOURNEY
WAREHOUSE
HANDHELD DELIVERY MARKET
DYNAMICROUTINGSYSTEM
• Live orders deliver to ERP from handheld
• ERP will process the data and transfer to
Route Pro
• Route pro will prepare loads, route and
journey
• Route Pro will transfer the orders to
warehouse
• Ware house will process load per truck
• Journey will be uploaded on handheld
Delivery
• Delivery will take load to market for drops
and collection.
Pre sell route – order collectionDistribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
10. 1
2
3
4
5
6
7
1. Unique ID to identify records
with or without barcode.
2. Quick Info for quick filtering.
3. Data quality check (good, re-
validate or for deletion)
4. Re-validator, record for re-
validation will be downloaded
to this user’s device.
5. Indicates if record for re-
validation is already
downloaded.
6. Count of mandatory fields.
7. Suggested address based on
the geocodes.
8. Highlighted fields are
mandatory.
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
11. • Sibco is the largest Pre sell operation in the Region
• Sibco is the first bottler to launch its tele sales channel
• Sibco enjoys the highest value share for LRB business
• Sibco Market share grew 6.7 pts since 2010 .
• Sibco has the finest front line team in the region
• Sibco saved 11 million $ through S&D transformation.
• Improved saudization to reach 30%.
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
12. • Sales process automation & control
• Front line calibration & building talent
• Commission system rationalization
• LRB selling excellence
• Fleet development & rationalization
• Operations control center
• Sibco tele sales center
• Sibco E commerce roll out
• System & Hardware upgrade
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
13. 2009
Front line health
Check
Front line
Driving test
Front line apt
test.
2010
Objective
setting
Aop S&D
Planning
Helper Training
program
2011
Own Your LRB
Route
Merchandizing
Training
Modern Trade
Sales excellence
2012-14
Tele sales
LN
transformation
Tele sales
Training
ATU
Lead university
2015
MRO training &
development
Pre sell
excellence
ATU
2016
Delivery
Excellence
Front line
competencies
New
commission
Scheme
1050 employees
were covered
by these
programs
Trained 700
employees
885 employees
got trained
650 employees
were trained
250 front line
members were
trained
1200
employees
were covered
by these
programs
Sibco Front Line development
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
14. Sipco Front line Age/Edu
30
100
146
125
84
56
65
0
20
40
60
80
100
120
140
160
25 below 26-30 31-35 36-40 41-45 46-50 51+
SALES ORG AGE
0
6
209
218
52
189
N ON 6 Y EA R S 9 Y EA R S 12 Y EA R S 14 Y EA R S UN IV ER SITY
EDUCATION LEVELS
• 401 employees are < 40 years of age
• 121 , 20% of the team is 46-51+ years group!
• 40% of the force is >14years of Edu.
• 60% is up to or < 12 years of Edu.
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
15. Back Ground
• Sibco managed a DSD org
structure over decades
• Sibco migrated to pre sell and
gradually expanded it across all
markets
• Pre sell manpower
requirement were different
than DSD
• DSD operated with 1400+ head
count to meet the market
demand.
Sales OrgTransformation
• Sales Org Rationalization Plan
was developed to meet the
current and future Man power
needs
• Front line to be strengthen
• Back office team to be
rationalized
• Over all 251 people are
reduced through a criteria
based selection
• S&D system to operate with
1150 man power.
SIBCO HEAD COUNT RATIONALIZATION PLAN -2016
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
Sibco operated
350+ DSD routes in
early 2009
Sales org was designed
to meet TU standards &
market place TTS
Each route was selling ,
delivering & collecting
Hand held were used
for invoicing & CC/SR
measures.
Sibco migrated to Pre
sell & Tele sales
Developed a delivery
system with high asset
utilization
Improve route sales
from random to more
controlled
Back office need were
streamlined to support
the new dynamics
16. Sales Positions 2015-Act 2016-Plan diff
Sec Head 19 9 -10
TDS 27 16 -11
ADR 41 26 -15
TC 35 13 -22
MT exe 11 11 0
Ws Exe 6 6 0
Collector 2 0 -2
Pre Seller 94 91 -3
Tele Sellers 32 30 -2
CR 37 36 -1
Del Driver 216 223 7
Helper 507 441 -66
Merch 130 48 -82
Total 1157 960 -198
Other Positions 2015-Act 2016-Plan diff
KAM 1 1 0
Sr Analyst 5 0 -5
Sr Admin 7 3 -4
MRO 17 0 -16
Store Man 1 1 0
GTM SH 1 1 0
SS SH 1 1 0
CDA SH 3 3 0
NCB SH 1 0 -1
R Exe 3 2 -1
Sales sys Exc 6 6 0
Artsan 2 0 -2
CDA Auditor 8 4 -4
Trainee 1 0 -1
Total 57 22 -35
Organize Trade 2015 2016 diff
MDM 2 2 0
KAM-MT 4 4 0
KAM-OP 7 7 0
TMM 1 1 0
TM –sec head 2 2 0
TMEx 3 3 0
TM S 1 1 0
Coop Coord 1 1 0
Market Analyst 1 1 0
Planning Exe 3 1 -2
Total 25 23 -2
Other Positions 2015-Act 2016-Plan diff
Delivery Sup 7 4 -3
Dispatcher 10 5 -5
Sr.Sup 15 10 -5
Mch. Sup 3 2 -1
Exe Dir 1 1 0
Sr. Director 2 2 0
Director 4 3 -1
Sr. Manager 2 2 0
Managers 9 9 -1
Br. Manager 2 1 -1
S.Total 55 39 -16
G.Total 1285 1034 251
SIBCO HEAD COUNT RATIONALIZATION PLAN -2016
Guiding Principles
• Reduce role duplication
• Use of automation to minimizing
double handling
• Go for plan Merchandizers
• Remove trainee factors for future
needs
• Reduce spare to 10% only in PS &
DD roles.
• Freeze positions vacant
Distribution
Infrastructure
People
Sales &
delivery
GTM
operations
Technology
17. Setting Direction
- Established Pre sell
customer classification
& routing for sales &
delivery operations
-DevelopedTele sell
option for <13 case
customers. Designed
delivery operation for
Tele sales channel.
Pre sell Execution
- LaunchedTele sales
channel in Jeddah base
market
- Executed Pre sell for
<35 case DS customers
inTT channel.
-Team building
-System Integration
-Market place
execution
GTM Development
*ExpandedTele sell to
out station markets
*Developed front line
to excel in pre selling
*Introduced auto-
picking loading and
delivery processes
*Enabled selection &
testing of right fleet for
max efficiency
*Initiated dynamic
routing processes.
Fleet Development
Develop robust fleet
plan based on market
needs & distribution
strategy – $33 million
investment including :
* 10 bay trucks 208
*12 bay trucks 47
with fork lifts
*8 bay trucks 15
* Fork lifts 47
Plan delivery and
induction by
Q-3/2016
GTM transformation journey 2013-2016
2013 2104 20162015
Distribution
Infrastructure
People
Sales & delivery
GTM operationsTechnology
Sibco GTMTransformation 2016
Way forward
• Invest in Automated
Storage and
Retrieval System
and stock picking
for DCs.
• Develop a cross
docking system for
remote markets
• Use E commerce to
improve customer
engagement &
service levels
• Work with SADAD
to eliminate cash
transactions
2017….
