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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. 

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.

Our work included:

  • Cost Centre Analysis;

  • Warehouse Observation and Analysis;

  • Salesforce & Customer Analysis;

  • Strategic recommendations.

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.

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.

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.

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

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