Food Distribution CRM Study & Profitability Analysis

Nicosia, 2007

 

Navigator Consulting implemented a comprehensive CRM analysis of a leading food processing and distribution firm in Cyprus. 

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We needed to determine which clients were truly profitable, and how to structure sales and distribution activities and processes as a result. The objective was to develop:
 

• An exhaustive analysis and dynamic model of net customer profitability;

• The distribution of corporate overheads using a proprietary methodology.

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Our work included:
 

• Cost Centre Analysis;

• Warehouse Observation and Analysis;

• Salesforce & Customer Analysis;

• Strategic recommendations.

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An analysis of delivery and distribution staff showed that 95% of staff systematically worked from 1-3 hours more per day. Their minimum-wage pay created a negative incentive: work slower and longer hours, maximizing the daily income.

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Yet the supplier needs productivity, expressed by the number of deliveries made per day by vehicle-driver teams. Reversing a cost-based incentive to focus on productivity and investing in better distribution equipment and employee retention and training, although counter-intuitive, leads to higher profitability and higher stock turnover.

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We recommended differentiating delivery and sales operations, focusing on specific customer segments and investing in productivity. This included the use of staggered delivery scheduling, minimum order sizes and conditions, and a different performance incentive structure.

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For further information on CRM studies and profitability analysis in Cyprus, please contact us.