PROBLEM
In view of this market situation, the strategy was divided into two main lines of action:
- To promote structural changes in the market that will stimulate percapita consumption.
- Increase the company´s competitiveness focusing on organizing more efficient customer service (better service at the minimum cost).
The importance and relevance of this topic was obvious and some of the difficulties that had to be confronted to successfully solve this situation
were the following:
- The need for a methodology to determine the needs and expectations of different customer groups.
- Conflicts of power between different areas of the company.
- People’s availability of time.
- Resistance to change due to deeply entrenched practices.
- Simplification of the Group’s operation (cost reduction) without affecting the level of service offered and market participation.
SOLUTION
The approach was divided into two great initiatives:
- Organization focused on customer.
- Centralization of administrative functions and planning
- 100% assertive supervision
For the first initiative, we defined an offer of service for each of the four defined customer segments based on profitability, volume, needs, and service provided by the competition.
This service offer, in accord with the importance of each client group, contemplates aspects such as the following:
- Order acquisition – Through different types of sales staff or the customer service center.
- Customer service – Frequency of visits by the sales staff and collection through direct bank deposits made by the customer.
- Filling orders – Delivery time in days and minimum order size.
For the second initiative, we defined that the administration, service to customers, planning and programming of production must be centralized in order to simplify the operation of the business. Only simple activities such as execution and follow-up were to be carried out by the regional offices.
These initiatives were successful thanks to the implementation of a central information system (ERP), which allowed the establishment of mechanisms of control and supervision of the operation in the most effective manner.
- Reports by exception
- Monitoring the performance of the customers according to their behavior
- Personalized supervision of the entire organization.
BUSINESS BENEFITS
- Increased market positioning
- Service Level 20pp
- Market share 3pp
- Reduction in Costs
- Distribution centers 74%
- Administration and sales costs 40% fixed costs
- Number of sales people 45%
- Accounts receivable (days) 75%
- Customer service 73%
- Reduction of uncertainty
- Sales programming 60pp
About Sintec
Sintec is the leading consulting firm focused on generating profitable growth and developing competitive advantages through the design and execution of holistic and innovative Customer and Operations Strategies. Sintec provides a thorough and unique methodology for the development of organizational competencies, based on three key elements: Organization, Processes and IT. Furthermore, Sintec has successfully carried out more than 300 projects on Commercial Strategies, Operations and IT issues with more than 100 companies in 14 countries throughout Latin America. Our track record of more than 25 years makes Sintec the most experienced consulting firm in this area of expertise in the region.
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