Potential increase of +10%
in volume and +14% in EBITDA within the next four years thanks to the reshaping
of the route-to-market model (RTM).
In a highly competitive market,
dominated by few players, our client (a leading beverage company) requested our
help to capture growth opportunities in the fragmented trade channels, highly
relevant in terms of volume and profit. The client’s market penetration would
improve significantly, while the logistics and the sales force structure could
be further optimized to capture efficiencies and increase volume and value for
We used different research
techniques at the outlet level in order to assess client and competition level
of execution. This allowed us to identify service-level requirements and
consumer preferences. On the other hand, route-ridings with pre-sellers and
delivery trucks helped track both efficiency and effectiveness. Finally,
interviews with distributors and different management positions were conducted to
map out the value chain and identify improvement opportunities. We should
highlight that our client had a highly automated and mechanized warehousing and
picking system that was very rigid and unable to adapt to the requirements of
fragmented trade (i.e. 48h vs. 24h delivery).
We delivered a new route-to-market
model, with a segmented service level for each retailer typology, while
introducing a value-added sales force position for high-value customers. Also, we
optimized the distributor network, reducing their number, increasing their
size, expanding their role, and laying the foundations for distribution partner
development (eliminating the legacy transactional approach with distributors).
Ultimately, our client would have better control of the market, a potential
increase in market penetration, and a lower cost-per-case thanks to synergies
generated with other complementary categories.