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Home Case Study FMCG DSM Outlet optimization

Case Study

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DSM Outlet optimization

Industry: FMCG

Problem Statement

A popular FMCG company required a tool which would help plan its distribution to extract best ROI (return on investment).

Our Approach

  • Analysed sales, outlet trends with respect to visits by the sales executive.

  • Segmented outlets.

  • Identified optimization opportunities.

The How

  • Scientifically clustered outlets based on multiple parameters indicating potential/performance into: Inactive, laggards, low potential and stars.

  • Optimized sales effort into stars to provide higher sales value growth at lower effort/cost.

Insights to action

  • ROI analysis.

  • Cost to serve analysis.

  • Sales drivers (outlet clusters based on behavior).

  • ROI Simulator.

  • Pi recommendation (Optimal solution that offered cost optimization & sales enhancement).

Impact

  • Distribution plan provided @ outlet level resulting in 9.1% spike in Sales & 12.1% spike in ROI.

  • Client was provided with 3 plans:

  • Cost optimization plan (lowest cost at which current sales is feasible).

  • Sales enhancement plan (best case sales at a similar cost).

  • Sales stretch plan (Best case sales at optimal cost based on outlet potential).

  • A tool with an easy-to-use interface for Simulation & Analysis was provided for effective planning and sharing.

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