However, working with partners in this way is not always easy and can actually cause problems with standards management, channel consistency or price control.
The challenges in operating with this channel vary from:
Understand the role, capabilities, and business objectives in the indirect channel.
Strong coordination between regions and channels.
Develop an appropriate selection process to select the best agent for each region and channel.
Management processes Ensure consistency between strategy, delivery and implementation through recognition and plans, performance KPIs and incentives.
Link sales, distribution managers and buyers to the strategy by clearly defining areas of responsibility.
The real challenge when working with partners is to find solutions that take into account the strengths, needs, strengths and interests of each party. If there is a long-term partnership, each party should play a role in line with their abilities and expectations.
We support our customers in two different ways:
Improve sales result and performance in selling products across the whole portfolio
Reach numerical distribution targets
Optimize financial results in the indirect channel, which usually are below the company average
Improvement in S&OP processes by reducing stock outage and excess inventory
Guarantee sell-out control and avoid price competition between channels or partners
Ensure a holistic view of the company market share and sales performance through sell-out visibility
Guarantee an adequate execution and activation for each type of POS, thus improving trade marketing investment efficiency
Reduce turnover in the partner network, strengthen long-term relationships and partner loyalty
Each client has its unique context, objectives, and needs with the indirect channel. We combine your knowledge of your business, Integration’s expertise of the Indirect Channel, and a methodology that ensures a holistic tackling of all issues.
Our methodology is structured in three steps during which we bring to focus the key questions to be answered in order to build a unique solution adapted to the client:
PRM is a revolution not only in the business world but also in other parts of the company. Finance area deals with the cost of rules on the network, products are affected by high-end services, have a say in cooperation with business partners, Contracts and cooperation terms and Laws provide HR intellectual management feature groups etc.
The way we work to ensure that needs in all areas of the company are recognized and met through activities, through training, newsletters, weekly management and collaboration with multiple teams, building trust and collaboration across the company. We don’t want the project to be seen as a ‘one-off’, so we aim to build internal capacity through training and capacity building so you can achieve great results. Our aim is to provide you with clear and practical guidance for action and to develop your skills to support continuous improvement.
It affects your PRM partners even outside your company. That’s why we ensured that their needs and interests were taken into account in the project from day one, and this demand formed the basis of a strong partnership that is important for long-term success.
CHALLENGE
A beverage company’s head of global sales saw that their local units all manage their own distributors with different decisions and measures. This leads to visibility problems and inconsistent results across countries and difficulties in implementing international standards. Clients turn to joint ventures for support in developing methods for identifying and designing international direct links.
APPROACHWe have collected and analyzed comprehensive data on contract suppliers and regulatory structures in each country.
(i) the best distributor profile,
(ii) how to evaluate existing distributors and replace distributors that do not meet minimum requirements,
(iii) how to create internal and external overlapping networks – Distributors prerequisites and
(iv) how to evaluate the relationship management process.
RESULT
We cooperate successfully and support the international team of our clients to participate in the design process and enable them to implement this new model in more than 10 countries from different countries. The model provides the ability to compare performance across countries in a central leadership team, while allowing for changes based on local facts.
CHALLENGE
A firm that trades in personal care products is working in unethical ways with private sellers and vendors who are having trouble with conflicts at the crossroads and trying to distribute its volume at the level of its main competitors.
APPROACH
Our first step is to identify the root cause of the performance issue. With deep sales and category analysis, we can determine that the best time is not in distribution, but in decline, which can be said to be with the promotion of products sold per PoS.
Once this issue is resolved, analysis of region, channel, and category characteristics, as well as the competitive landscape, identifies the best model for the customer and often focuses on specific vendors. Establish a method for measuring talent and performance of each supplier through post-training integration and accounting team.
RESULT
Based on this assessment, we create improvement plans for 50% of the network and support customers in identifying necessary changes for 20% of situations that require new partners in specific areas/channels.
We support the development of action plans, identifying key achievements and business plans, including various aspects such as business policies, day-to-day work of the sales team, process management, distribution and information systems.
CHALLENGE
A global cement producer has renewed its market entry after claiming that its drivers were growing under the influence of fraud. Customers can decide on the best way to enter the indirect market (which service model to use, which companies to work with, etc.).
APPROACH
The first step is an in-depth analysis of each region’s market size and composition, cement application types, size of end users and end users to decide on purchasing procedures (including specifications and pricing).
This provides valuable business insight by identifying key growth areas and highlighting financial opportunities in specific areas. For example, we found that 50% of the market is small shops that accept, on average, less products than the old customer, where they can make a good profit.
This presents a clear opportunity for customers to grow through cost-effective delivery of smaller products in a highly fragmented market.
Next, a number of cross-industry applications were explored to identify a new biased model that included specific distributions, suppliers, and logistics personnel and was particularly good for finance and development factors.
RESULT
Together with customer experts, a method was developed to evaluate the performance of 172 potential partners, and the 70 best suited to their needs were selected.
In order to catch up with the new standards, we have created a special service for each country and created an indirect management model. This includes more than 150 pages of the best business deals in the book, with a contract model, payment model, new owner manager and training, and affiliate links. model.
CHALLENGE
Leading national markets, large international producers face the unique challenge of underperforming in rural areas and outside of major food centres. To meet this challenge, the applicant joins for support to support their GTM with unbiased solutions.
APPROACH
Clients face the problem of identifying ‘unseen’ performance due to the lack of rural market audit data. So in this case, our different employees adapted our PRM approach to our customers’ specific situation, starting with a business scan to understand the internal root of the problem.
Through many visits with customers from rural areas in different regions, we were able to analyze performance and understand the key success factors required for this particular market. This has led to the creation of a new franchise micro-distributor model designed to meet the expectations of the rural market and the goals of the client.
RESULT
He created a fast-paced solution that opened over 200 distribution channels in a few years. A client can achieve long-term change and even a small boost in the national market by breaking the leading position within a year – what seems important may have given them a strong leadership position.
Our GTM approach is one of our most advanced solutions and the integration has delivered over 400 crops and fertilizers over the years).
The experience is international, including Brazil, Canada, the United States, Russia, Mexico, Argentina, Italy, Denmark, Central America and the Caribbean. We support international companies with our GTM projects, which can be regional or national.
Dhruv Patel is an engagement manager at BMCS and has been working since 2019 in the Argentinean office in the Supply Chain Practice.
Aarush Gandhi is a Manager at BMCS with significant experience in Supply Chain and Implementation having worked across both of BMCS practices.
Nikhil Singh is a Director at BMCS and has been working since July 2011 in the practice of Marketing & Sales. Prior to BMCS, Jonathan was an Analyst
Keshav is a Manager in the Marketing & Sales practice. Originally from Columbia, Luis is an entrepreneur at heart, and has worked in several start-ups in Colombia, receiving his MBA
Chaitanya Varma is a Financial Controller at BMCS and has been part of the Finance area since January 2011. Her experience includes financial analysis.
Rishi Sinha is a Specialist on Supply Chain Strategy at BMCS, working since 2010 at the firm. He has over 20 years of experience in Supply Chain collaborating with companies
Knish is a Managing Partner and has overseen the Mexico City office since 2008. Prior to BMCS, Gerard accumulated 25 years of experience in executive positions at L’Oréal
Rajbir is a senior manager I within the Implementation practice at BMCS, and has been part of the team since July 2011. His experience includes leading transformational projects.
