Empowering Consumer Goods Industry with Direct Retail Distribution (DRD) CRM

Dears,

Consumer Goods Technology developments have the potential to redefine ‘business as usual’. In the right hands, powerful mobile devices, connected to high-speed networks, can drive innovative approaches to direct retail distribution (DRD) that were not previously possible. If you’re a Consumer Products company considering new systems for your DRD operations; looking for ways to better integrate your field sales, delivery and merchandising operations; or wanting to increase competitive advantage through higher levels of in-field service and productivity – this article will make little difference to you as well.

DRD drives multiple benefits through the power of in-field synergy: a fresh, cohesive approach that builds brand presence by providing capabilities to: a) expand the traditional role of DRD drivers; and b) to coordinate the efforts of complementary groups of field workers. DRD transcends the barriers imposed by rigid roles that have traditionally isolated the tasks of drivers, sales reps and merchandisers. Not only can drivers now do more in store, they can alert supervisors and central headquarters, as well as sales representatives and merchandisers in their regions, to any field situation they observe that requires prompt attention. Schedules can be reprioritized in real-time based on a constant flow of in-store information.

Quick, coordinated responses unite field workers in their ability to achieve key business objectives and win at the shelf. No longer isolated individuals; they are interconnected teammates lifting their brands. All members of the team can think and act as in-store brand advocates; each has a keener sense of the fierce competition around their brands (from traditional foes and private label alike). They know the roles their brands play in categories and their need to align with shifts in customer needs – store by store – and in local consumer demand. They work more purposefully and positively to protect their brand sales, profits and market position. And in this new paradigm, everyone who touches a store on behalf of a brand is capturing data that can help Consumer Products companies make better strategic and tactical decisions. This is a giant leap for brand-kind.

WHAT MORE COULD BE DONE IN THE FIELD?

Here’s a quick sampler:

·         Field workers use store printers to issue purchase incentives and coupons on the spot to offset a Competitor’s two-for-one promotion.

·         Field staff access Retail Application help stay in consistent compliance, and immediately reschedules labor priorities if needed.

·         Product recall alerts beam to all DRD handhelds to remove affected items from store shelves, and real-time reports back from the field verify the action. (Rapid recalls can differentiate brands; nearly half of consumers have changed shopping patterns due to food safety concerns – and they don’t equate higher prices or brand names with safer food.

·         Store-by-store memory of past performance, promotions and display preferences are instilled; this enhances productivity and brand presence, and makes field staff turnover a moot point.

·         Field workers take photos of a competitor’s new packaging or promotion and transmit immediately to HQ.

·         During periodic reviews with retailers, account teams can document that their field force spent, say, 20,000 hours servicing the chain’s stores; can detail achievements (e.g. no voids in end caps, minimal out of stocks); and document category performance lift as a direct outcome of these efforts.

DRD not only allows companies to blend the activities performed by deliver drivers, it also allows the driver’s role to be integrated into an end-to-end field operations process. By utilizing mobile technologies and applications that interact across field managers, sales reps, in-store merchandisers and DRD drivers, companies can respond more quickly to brand performance issues in the field. These may be related to out-of-stocks, new product launches, in-store promotions and point-of-sale display, share of shelf or competitor activity. Co-coordinating field team members to address these issues in a timely manner (that can have a positive remedial impact on revenue and brand performance) is a significant challenge that can be addressed through DRD, as illustrated in the scenario in the picture.

What to seek in a next-generation handheld

Several motives drive the decision of CPG manufacturers to replace older technology. First, the costs to continue to support end-of-life hardware and software become unwise or prohibitive. Second, increasing demands on CPG field teams to perform create the need for more powerful, advanced devices with new capabilities—and ruggedized units with larger screens, higher resolutions, faster speeds and longer battery life are available at comparable costs. Third, today’s more robust technologies enable DRD drivers to get more involved, to expediently complete and report on a broader range of tasks.

The fast pace of technology advances keeps CPG seeking more robust solutions for their DRD teams. Devices with capabilities on this checklist will equip brands with the information power and industrial engineering their teams need in the field:

·         well-supported sales and merchandising functions, such as compliance, distribution and share-of-shelf checks, competitor price checks, shelf resets, consumer intercept surveys, delivery and invoices

·         web-based integration with CRM ( Oracle Siebel CG CRM /Oracle Field Sales ) to ensure invoice prices are 100% accurate based on back-end systems

·         pre-sales functions

·         DRD solutions on a ruggedized PDA/Smartphone

·         choice of a tablet or laptop, which is sales and merchandising focused

·         choice of a cell phone for simpler field condition audits

·         the ability to barcode scan the outside of case cartons

·         modern, scalable architecture that could fill needs for the next decade

·         rapid deployment

Paradigm Shift

It is axiomatic to say that the world inhabited by Consumer Products companies is one of constant change. Anyone who has lived through the past few years would be hard pressed to argue otherwise. In modern trade markets, the seismic changes that have reshaped the competitive landscape have also created opportunities for companies to reshape their operations to service customers more efficiently and more productively. Direct retail distribution, long regarded as a logistics function at the end of a highly optimized supply chain, is one such area of opportunity. New thinking about the role of the delivery driver as an agent of in-store brand presence – and of DRD as an integral part of the consumer demand chain – can be a powerful lever for competitive advantage. This kind of thinking is no longer just wishful. The availability of powerful handheld devices, high-speed mobile networks and innovative applications provide the tools that can drive Game-changing initiatives for forward-thinking companies. With traditional DRD solutions nearing the end of their shelf life, and with a growing expectation from retailers that there is more value these systems can deliver, Consumer Products companies are in the position to drive a welcome change.

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