Signs that your distribution model is losing margin
You don't need a crisis to review your strategy. If your distribution company shows any of these symptoms, the problem isn't in the market or your team, but in the architecture of your business model:
01.
High-volume but low-profitability routes
You have routes that generate sales but, when you calculate the real cost (salesperson, freight, downtime, returns), they destroy value. Often this calculation isn't done rigorously because the numbers are spread across different cost centers.
02.
Stagnation in sales team productivity
Your team is working longer hours than they were three years ago, but results per salesperson aren't improving at the same rate. The operational structure has grown, but sales processes have become outdated.
03.
High-cost, low-margin customers
Large clients who demand a lot, pay late, and absorb too much attention coexist with small, neglected clients who, together, could represent a very significant portion of your volume.
04.
Excessive pressure from major manufacturers
Brands pressure you with coverage and execution targets at the point of sale (POS) that your team cannot consistently meet, not for lack of desire, but because the route is not designed to achieve it.
How we optimize the operation of your distribution company
We don't use generic manuals. We analyze your routes, your portfolio, and your customers to design and implement changes in three critical areas:
Profitability by route and customer segmentation
We identified the true margin per stop by allocating all hidden costs. We redesigned the segmentation, adjusted visit frequencies, and restructured the portfolio by route to ensure that every trip is justified.
Productivity and structure of the sales team
We solve design problems: poorly defined roles, misallocated territories, and incorrect KPIs. We evaluate incentives and management routines so the current team can achieve more with less friction.
Relationship with manufacturers and execution at the point of sale
We designed the "Success Picture" for each store type and structured monitoring processes. We aligned incentives and the business relationship with your main manufacturers to ensure the effort is profitable for both parties.
Measurable results in distribution projects in Latin America
We identified between 30% and 50% of routes as inactive or unprofitable. By addressing these issues, we generated improvements of 4 to 8 percentage points in operational profitability in less than a year.
Sales productivity: We achieved an average increase of between 20% and 35% in productivity per salesperson during the first six months under the new model.
