“Inspect What You Expect”

Management expects their DSD investment to deliver profitable, incremental volume. But for many sales managers the “inspection” aspect of this age old mantra is challenging to implement because of the numerous factors that affect DSD performance. To help our clients “inspect what they expect” from their DSD efforts, DHC developed a scorecard monitoring system to aide in running driver programs, and to identify the factors influencing profitable sales for products going to market via DSD.

We developed the DSD Scorecard by evaluating the key drivers and value-added activities that affect DSD performance and profitability. The scorecard assesses drive time, distance between stores, # of stores covered, in-store time, activities performed (sell, stock, collect, etc.), wages, vehicle costs, fuel costs and more. In one use of DHC’s DSD Scorecard, a manufacturer’s drivers sold select SKUs of strategic importance, performed several merchandising activities, and influenced portfolio distribution with store decision makers. In this case, the driver’s influence was greater than simply the next sales transaction. Our model addressed the multiple sales activities, accounted for the sales impact, at the driver and distributor level, and provided management with a sensitivity analysis to identify the critical decisions which drove DSD profitability.

Based on a complete analysis of performance drivers, DSD Performance Monitoring Scorecards can be developed and realistic ROI results can be established. Using the Scorecard, Management can justify the value of their DSD programs, make decisions on where to place additional drivers, determine high opportunity markets, and focus performance-enhancement activities in markets with operational shortfalls. Essentially, management can focus on performing the right activities in the right markets at the right timing for optimal market development.

Modeling DSD issues helps sales managers make profitable decisions and justify investment decisions on par with other sales and marketing investments.

Contact DHC to get the right ROI for your DSD sales investment.
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