At a Glance
After a project with Renoir to improve profitability through improved sales practices, the client:
- Improved order fulfilment by 60%
- Optimised systems and processes in Sales, Distribution and Planning
- Enhanced ‘super stockist’ and distributors network by 12%+ and 8%
- Increased on-site visits and sales force productivity
- Trained its top 70% channel partners in FMCG Field Sales best practices
- Set up an IT-enabled sales management interface
Background
Our client is an FMCG manufacturer which was first established in the 1930s as a small retail sweet shop in India. Since its founding the company has grown significantly, forming its own manufacturing facility and establishing outlets and sales and distribution networks across India.
The client’s senior management recognised that there were opportunities to improve profitability through better working practices, operational excellence in production and planning, and implementation of best practices in sales. This led the client to select Renoir as their transformation partner.
The Challenge
An in-depth analysis of the client’s internal processes was conducted along with observational studies to understand current ways of working and determine overall process and system-related issues.
The key issues identified were:
- Demand-driven daily production planning and monitoring was not being performed.
- Front-end sales officers were not spending enough time in active selling and merchandising. There was a lack of proper training and orientation.
- Sales management and monitoring systems were ineffective and channel partners and sales staff didn’t have clear visibility of their targets and backlogs.
As such, the improvement opportunities shortlisted were sales team training, improving standard operating procedures, logistics and the supply chain processes.
What We Did
The overall objectives of the project were agreed upon. These included:
- Seamlessly servicing consumer demand while managing production and logistics constraints
- Making the sales team more agile, proactive and data-driven to improve market share and coverage
To ensure senior management guidance and direction, a project steering committee was set up that included the client’s directors. Eight Management Action Teams (MATs) were formed – three for production, one for planning and four for sales. The MATs consisted of client staff on a part-time basis, who were responsible for driving change and achieving the desired results. In turn, all MATs were supported by seven full time Renoir consultants.
The teams focused on aligning product supply with market demand through a robust and centralised planning system. The approach to improving sales was based on aggregating market demand, gathering intelligence, improving sales force effectiveness and expanding the client’s distribution network.
Better sourcing and procurement for cost savings: Case study
How OEE can help improve your manufacturing operations
Better sourcing and procurement for cost savings: Case study
How OEE can help improve your manufacturing operations
Ready to transform your organisation?
Meanwhile, to optimise operations, focus was placed on improving order fill rate and capacity utilisation by establishing a reliability-centred maintenance regime and tighter production planning and control.
Following Renoir’s Focus Process®, targets for the project were clearly defined, solutions developed to achieve the targets, and changes implemented in such a way as to engage the wider organisation in delivering business benefits.
Activities to deliver the project objectives were grouped under three main areas as follows:
Enhanced Plant Operations
The joint client-Renoir team undertook a huge capacity mapping exercise at the client’s plants, whilst also laying the foundation for production loss accounting. Dashboards were developed to measure and control performance. Maintenance trackers were established to capture equipment breakdowns and critical part data that formed the core of a reliability-based maintenance system. Its quality control regimen was also enhanced.
Improved Production Planning and Scheduling
Planning was central to the client’s entire supply chain, and so the team converted production planning from an experience-based system into a data-driven one. With the help of the client’s IT Department, the team set up a platform to aggregate demand from all ‘super-stockists’ daily which then provided the data needed for production planning according to available capacity. As a result, super-stockists’ order fill rates improved drastically by 12% by the end of the project.
KPIs were established and closely monitored to ensure that the production plan was accessible to all plants. Additionally, a sales and operations coordinator was hired to independently handle all planning and capacity issues.
Sales Process Improvements
An exhaustive training program was designed and delivered across the country covering the primary sales force and channel partners. This highlighted best practices in selling in the FMCG industry, including weaving the use of data and analytics into daily selling activities.
In addition to the training program, an IT-enabled platform was set up to monitor sales KPIs. These highlighted areas of poor performance such that remedial action could be taken based on data rather than perception.
To ensure sustainability improvements, a field audit mechanism was also devised to monitor the repeatability of best practices post-training.
Results
Robust management control systems were set up across all core functions which will enable HFIL to grow aggressively and sustainably into the future. The engagement resulted in measurable bottom-line impacts for HFIL as well as increasing their market share.
“We all know that a lack of clarity can put the brakes on any journey of success – but with Renoir’s help we have gained significant clarity in terms of our vision and actions.”
Managing Director
Looking to increase market share with enhanced performance management?
