Efficiency optimization in the sales department of a household appliance manufacturer
Challenge
External benchmarking has revealed comparatively high distribution costs (in % of sales)
Approach
Identification and quantification of key efficiency levers
Assessment of the consolidation possibilities of foreign companies by analyzing the customer base by origin and administrative centralization as well as by analyzing the duplications in the country organizations
Uncovering of flaws in the incentivization system by evaluating the salary structure and commission components per role
Focus on value-creating activities by measuring the time usage per activity per role, identification of process improvement potentials and recommendation of activity redistributions
Reduce unnecessary margin reductions by analyzing the use of rebates according to customer value and tradeoffs, as well as modeling the savings potential vs. revenue loss risk
Derivation of concrete action plans
Result
Clear action plan including task packages, responsibilities and timelines with significant estimated result effect