A national FMCG client – sees 30% saving in operational cost of merchandising
A national FMCG company with a turnover of ~850 crores was facing a problem that plagues the industry. The cost of managing the merchandising operation was marginally higher than the benefit that was passed on to the store as pay-outs. A natural conclusion was to reduce the number of outlet in loyalty programmes to half. Or only deploy a separate merchandising field force for top 20% of the outlets. Our solution changed the game for the company at multiple levels. A 30% cost saving was delivered when the company migrated to our people + tech solutions. In the existing set up there were 8 vendors providing the merchandising field force. There was an independent technology vendor providing the mobile application, and photo audits were once in a quarter exercise done via dipsticks surveys. Moving to a national vendor for payroll and technology, delivered immediate savings and created a more robust and long-term solution for the company.