Case Studies
Van Sales Model
For a Medium Size Trading and Distribution Company
For a Medium Size Trading and Distribution Company
Challenge
The distribution was happening haphazard; the large deliveries were mixed with small deliveries and cash customers turning into credit customers
Approach
The company’s 2,000+ customers were studied and mapped in UAE map with their frequency of ordering and its respective deliveries at customers’ multiple delivery locations. The customers were divided into A-B-C category and the for the C category customers and low volume deliveries were put under a separate class. The final approach made per delivery cost effective and profitable.
Impact
The company managed to start the new business vertical under “VAN SALES”. The credit customers were turned into cash. 25% of company’s Vans were brought under Van Sales. The normal delivery cost was reduced by 20% and most importantly, the new business vertical became profit generator of 25% gross margin
Collection Improvement
For a fast growing medium size organization with large customer base
For a fast growing medium size organization with large customer base
Challenge
The Sales department was not closing business deals properly, the collection team was slow in connecting with right person and the operations team were laggard in completing the delivery process
Approach
The company’s 2,000+ customers were studied and mapped in UAE map with their frequency of ordering and its respective deliveries at customers’ multiple delivery locations. The customers were divided into A-B-C category and the for the C category customers and low volume deliveries were put under a separate class. The final approach made per delivery cost effective and profitable.
Impact
The sales team played pro-active role in clearing the outstanding along with the collection team. A team approach to fix the problem got rolled out. Credit Outstanding No. of days improved by 30 days and customers turning bad was curtailed.