Here are some details on the specific tools and techniques we use when delivering RtM excellence to our clients.
These tools form part of our methodology 20 Steps to Route to Market Excellence, you can read more on our methodology, here.
Distributor Performance Assessment
Assessments of the distributors are undertaken by a combination of qualitative and quantitative methods. In summary the assessment involves the following:
- Visit to Distributor Head Office
- Detailed discussions with Distributor Senior Management
- Discussions with Operational Management
- Trade visits with Distributor Representatives
- Analysis of Distributor Data
- Assessment of Distributor using Enchange Distributor Assessment Tool (see below)
Overview of the Enchange Distributor Assessment
Enchange has developed a Distributor Assessment Tool that assesses distributor performance and benchmarks them to international best practice standards as follows:
- Performance Categories. The Enchange Assessment Tool will be adapted for each client and will measure up to 10 categories. Under each category, there are at least 10 specific factors that the tool rates to determine overall scores for the distributor.
- Performance Bands – we then categorise each distributor into levels of performance based on the Distributor Assessment tool adapted for the client – for example, 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.
- Distributor Development Plan. The assessment will be used as the basis for developing a bespoke Development Plan for each client distributor.
An example of our Distributor Assessment is presented below.
What areas could the Enchange Distributor Assessment look at?
Performance categories could include for example:
- Demand Management
- Inventory Management
- Sales Management
- HR & Organisation
- Finance Planning & Budgeting
- IT / Information
If you would like to know what is involved in Distribution Assessment and how they are undertaken and if you are interested to learn more about performance categories and performance bands, please download our Distributor Assessment Guide here.
A free version of our Distributor Assessment Tool is available for download here.
You can also read our case study on a Distributor Development Programme we have delivered to a multinational brewing client in CEE, featuring our Distributor Assessment Tool, here.
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.
Data & Metrics – Measuring Route to Market Performance
To measure RtM performance we often use a Balanced Scorecard approach, again adapted from the work of Kaplan & Norton.
We also utilise the latest supply chain analytical and RtM diagnostics tools which can help clients to achieve truly data-driven decision making and optimisation globally. Find out more about SupplyVue our supply chain analytical tool here.
Functional Integration – Integrating RtM with S&OP
- Many organisations treat Route to Market and the Sales & Operational Planning (S&OP) as distinct and separate activities. This can have the effect of a ‘disconnect’ between the supply chain operations and commercial activities within an organisation.
- Such a disconnect will impact the extent to which the supply chain can support the customer, often resulting in lower levels of customer services, and / or increased costs to serve the customer.
- Integrating Distributor RtM into the S&OP processes of a producer will deliver higher levels of customer service and lower overall supply costs. Such integration can provide the platform for a further step-change in RtM performance.
Diagrammatically the process can be represented as:
You will find practical, hands-on advice on how to improve your distribution operations in our RtM & Disribution in CEE E-book which also includes RtM and S&OP integration. Download your copy here.
What you should do now
- For further details on our methodology 20 Steps to Route to Market Excellence, read here.
- You can find even more information about each step of our methodology on our blog. Read blog posts here.
- If you would like us to improve your RtM execution – to increase brand distribution volume and profit growth, contact us for a Free RtM Session. During this free phone consultation, one of our experts will discuss your RtM goals and suggest strategies to achieve RtM excellence in execution.
- To understand what is involved in distributor assessment download our Distributor Assessment Guide here.
- To understand the capability of your distributors to achieve your sales objectives download our Free Distributor Assessment Tool here.
- To learn practical, hands-on advice on how to improve your FMCG distribution operations in CEE and developing markets download our RtM & Distribution in CEE E-Book here.
- For help with implementing 3rd Degree Partnerships download our Guide here.