Redesigning the Sales and Service Operations for a Telecom Company
The client, a telecom company was facing the following challenges in its business:
- Reduced gross margins from around 30 percent in 1995-1996, to 7 percent in 2000-2001
- High manpower costs and low per person productivity compared to key competitors
- Poor penetration in remote areas
- Poor servicing of products in remote locations
- Poor dealer productivity due to indiscriminate appointment of dealers over the past years
- Increasing sales in the retail channel where the company had negligible presence
The client asked UC to redesign the sales and service operations for the company.
To redesign the sales and service operations for the client, UC adopted the following approach:
- Reduced the regional offices from 6 to 4
- Reduced the branches from 23 to 17
- Set up remote offices which functioned without support staff in five locations
- Set up remote offices in 36 new locations to increase its reach and penetration
- Increased authorised service dealers from 30 to 52
- Consolidated the dealers based on its capabilities and the demand
- Initiated setting up of a retail channel with a target of 100 new retailers capable of selling high end products
- Reduction in manpower by 36 per cent
- Increased the revenue from product and service sales by 25 per cent and 84 per cent respectively.
UC assisted the client in restructuring the organisation’s sales and service operations.