Defining Route-To-Market (RTM) Strategy and Processes Optimisation

Routes-To-Market Strategy

Client Challenge

The client was a leading Food & Beverage company from UAE. It wanted to understand true profitability of servicing above 4,000 accounts and defined agenda for cost optimization. In addition, the client engaged UC Strategy to study its route-to-market practices and define initiatives to optimize sales and distribution operations and revenue upside opportunities for its consumer products business.

Our Approach

To conduct this engagement, UC Strategy adopted the following approach:

  • Conducted one-on-one interviews and workshops with all key people in client sales and distribution team to understand current practices and issues w.r.t to distribution models, sales organization, sales processes, key account management, sales forecasting, warehousing, last-mile transportation, etc.
  • Conducted customer audit across all channels (both on-trade and off-trade) across seven emirates in the UAE through detail discussions with channel partners. Objective was to understand customer requirement, current performance of client and potential to improve processes
  • Conducted motion studies and warehousing process mapping to understand issues and cost of servicing different accounts
  • Built a dynamic and interactive Cost-to-Serve model for client to understand true cost-to-serve at an account and order level
  • Built sales forecasting and inventory management models to optimize SCM processes
  • Conducted analytics on warehouse network rationalization
  • Defined actionable route-to-market initiatives (both short-term and long-range) to achieve profitable revenue growth

Our Impact

We defined 35 initiatives to optimize cost-to-serve in non-profitable accounts, optimize SCM processes and increase top line for profitable customers. We also defined optimization model to either outsource or rationalize ~4,000 non-profitable accounts and quantified benefits of $15 Mn in additional revenues over 2 years and $5 Mn in cost savings via timely implementation of UC Strategy recommendations

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