Route to Market & Distribution

Route to Market & Distribution

Route To Market Strategy Overview

RTM Improvement E-BookAlthough Route To Market (RTM) strategy development is an iterative process that can last several years
in some instances, we encourage clients to complete a “fast track” process within a 13 week period. Enchange has found that if the process extends much further, something inevitably changes (e.g. the environment), and organisations can get caught is a semi-permanent analysis state, resulting indelayed strategic decisions. Even if the process unearths fundamental challenges with respect to supply chain competitive position, a “strategic reference position” will have been established.

RTM Strategy Development

Route To Market Strategy Roadmap

  • One excellent method of presenting an RTM Strategy is a Strategy Roadmap.
  • Enchange has adapted the work originally developed by Kaplan & Norton (Balanced Scorecard)
    into a simple model – below.
  • Ideally this should be developed as a team exercise by senior commercial management.

RTM Strategy Roadmap

Measuring Route To Market Performance

To measure RTM performance we often use a Balanced Scorecard approach, again adapted from the work of Kaplan & Norton.

RTM KPIs

Route To Market  Components

A key part of any Route To Market strategy is determination of how the key RTM activities (e.g. logistics, distribution, trade marketing, integration) are managed in order to add the greatest value to the producer, the customers of the producer and ultimately the consumers. A producer has a number of options with respect to these key activities as depicted below.

RTM Components

Route To Market Distributor Programmes

  • Enchange has pioneered a distributor Route to Market programme that delivers maximum distributor performance without the cost of maintaining own direct distribution.
  • It is particularly suitable for Producers who use a multi-distributor model in markets with a high degree of ‘traditional’ non key account trade.
  • Enchange has a suite of RTM tools to measure distributor performance and distributor compliance to producer standards.
  • It always delivers a sales uplift and improved customer service for producers.

Measuring Distributor Performance

  • Free Distributor Assessment ToolThe 1st step is to measure current performance of distributors against international best practice standards, using the Enchange toolset.
  • Performance Categories. Tools are usually adapted for each client, and measure up to 10 categories including Partnership, Planning and Logistics, Sales Management, Finance and Back Office.
  • Performance bands – we generally measure 3 levels of performance – BRONZE
    (Basic), SILVER (Intermediate) and GOLD (Leading Edge), the latter being a true Partnership Distributor where all partners (particularly sales staff) in the business participate in collaborative strategic, tactical and operational planning and execution, reliable KPI data drives operational decision making, facilities are good quality, the organisation is capable of expansion and people
    development, job satisfaction, Reward and Compensation are priorities.

All Enchange RTM Programmes Deliver a Sales Uplift

  • An analysis and distributor categorisation provides invaluable data to target implementation effort
  • It will identify high potential distributors where a significant sales uplift is achievable, and
  • High performing distributors where market share protection is critical.

The following is as example:RTM Sales Uplift Example

 

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