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Future of Distributor
Global CPG Giant
Value added services
Multi-dimensional capabilities
New coverage models
New tech tools
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Context
Current distributors are facing severe headwinds from :
(i) reduced top lines due to modern trade, e.com, and others taking away chunks of business
(ii) reduced bottom lines – the distributor is no more the sole source of product supply for most large retailers
(iii) Low growth – sluggish industry growth in the last 5+ years due to –De-Mo, GST, Covid lockdowns, inflation, etc.
With low growth, increased costs, and reduced top & bottom lines, what does a sustainable distributor of tomorrow look like?
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Action Steps
Approach :
This exact transition happened in China 10 years ago. Extract key lessons from there, contextualize them to India & create a winning plan for the business.
End to End project split into 5 smaller pieces (Sprints) following the agile approach to – “go, learn & fail fast”- adjust & move to the next step.
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Sprints :
Discovery : Outside <> In : Understand the realities on ground, develop & articulate an organization wide common understanding of the here & now.
Expectations : Inside <>Out : Organizations (across levels, global, regional & in country teams ) needs & expectations.
Gap analysis: Data amalgamation to articulate the gaps between what’s today & what's needed for the future.
Solutions: Based on Gap analysis, input & output data: articulation of solutions.
Testing: In market piloting of solutions to learn, tweak & adjust.
Codify for scale.
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Capabilities for value-added services.
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Expand role into channels beyond traditional trade.
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Efficiency via new coverage models.
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Effectiveness with advanced tech tools.
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Culture that enables distributor relations to move from transactional to strategic.
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Differentiation as a key pillar of profitable growth.
Intervention in to create a winning future across ;
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Not only a seller of products but also a service provider.
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Not only sells in but actively enables sell out.
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Has multi-dimensional capabilities & flexibility that allow them to chase demand.
Visualization of a future distributor who is.
Results, Impact & Status