Being a distributor in changing times

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Being a distributor means optimizing costs while providing high customer satisfaction.

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Being a distributor in changing times

  1. 1. What is ChangingThe Indian RetailerIndia Retailer values Margin but also Service &ConvenienceComparison of service level of paints & weldingIndian Retailer is slowing beginning to understandthe ‘Velocity of Sales ‘ conceptMake 2% but on a brand which sells faster vs. 5 % onbrand that takes long timeIncreasing Retail Penetration makes it importantto retain customers and increase service levelsGrowth in retail in semi-urban and ruralNeeds distribution infrastructure & market development
  2. 2. What is ChangingIndian LogisticsRadio Frequency Identification (RFID) technologywhere everything that moves can talk toeveryone, everywhere all the time.Cartons of milk, bottles of wine, clothes, wallets, tyres,cars, pets and people sending out radio signals aboutwhat they are, where they are, and possibly what theyare doingGPRS controlled trucksInvestment in Road & Railway InfrastructureMore Organized Third Party Logistic Providers
  3. 3. What is ChangingIndian Tax RegimeGST will make ‘India’ a single marketMost important tax reform in India since 1947Eliminate the cascading impact of multiple taxes Remove irrecoverable taxes such as CST,complex documentation of inter State movementof goods, entry barriers at State borders -longtransportation times & entry taxes and octroiBenefit states that propagate consumption since the finaltax would be enjoyed by state that helped sell to theconsumer.Goods across states would be flowing with moreeaseDistribution topology should hence be purelytransportation and logistics led than taxation led
  4. 4. What is Not ChangingRelationships Matter. Even More
  5. 5. Distribution is much more thantrucking & storing
  6. 6. Fulfillment of changing customer needs at optimal cost
  7. 7. Sustainable, Distribution inChanging TimesHigh Customer Satisfaction & Low Cost
  8. 8. To AchieveHigh Satisfaction & Low Cost4 Cs for Sustainable DistributionCoverageCapabilityCost ControlCommunication
  9. 9. CoverageService LevelWe need to benchmark against the best in ourchannelAsian Paints ’s service level is more than 85 % whereasthat of other large paint companies falls between 50and 60 percentHigh Service Level (Availability of All Sizes & Products)Zero Stock-outs: Every Stock-out gives anopportunity for competitor to come inWould a customer wait for a day to get company brand?Would he travel an extra KM?
  10. 10. CoverageContinuous ImprovementSemi-urban and rural areas need to be prioritymarketIncreasing coverage in the current markets is acontinuous activityThe more we increase our coverage, the less thepower unorganized and cheap brandsBringing more & more dealers in direct retail willdecrease power of wholesalers and un-organizedbrands
  11. 11. Cost ControlNeed to Balance High Service Level withDistribution Cost ControlEffective inventory managementHow many inventory days of stocks you keep ?Effective control of credit outstandingHow many days of credit , how much interest costpaid to banks., proportion of Cash/DD tocheque ?Better Sales Forecasting leads to better costmanagementAnalyze past trends to arrive at a 90 per centaccurate sales forecast. Sales statistics bymonth, salesman, market, region and dealer.
  12. 12. CapabilityPeople ManagementHow do you assess performance.How can a Salesman say I had a good day or abad day ? Roles & Responsibilities ?How do you incentivize your sales force?Besides money what do you think will motivate the salesforceNeed for high quality training and recruitment ofstaffHow do you balance territories & cut travel time.Are you satisfied with number of customerscontacted every day
  13. 13. CapabilityHow Do You/Salesmen Spend Time ?
  14. 14. CapabilityEffective MerchandisingHot-Spot act as a CONSTANT SALESMAN andprovides incentives to buyDisplaying related items together builds impulsesalesShaving Cream & Shaving RazorsThe best selling area on any display is betweenbelt and eye level : 40” to 72”Better export box packing presents attractivemerchandising opportunity
  15. 15. CommunicationCommunication builds relationship. Communicationimproves channel managementBasic Software to do a small customer relationshipmanagementSend dispatch details after the material dispatchSMS on birthday & marriage anniversaryOrders received through SMSPayment reminders after 7/14 daysCommunicate price and other market information
  16. 16. Measures forHigh Customer SatisfactionHigh Shelf AvailabilityHigh Shelf VisibilityHigh ReachHigher ‘Share of Business’ of OutletImproving Sales
  17. 17. Measures forLow CostLow Logistics CostLow Total InventoryLow Total Credit DaysHigh Staff Productivity
  18. 18. To know more about us visitwww.mastersungroup.comWRITE TO sarvajeet@theadiva.com+91 9920803060

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