Wholesale & distribution

Based on our deep involvement in multiple wholesale and distribution assignments, a few central themes emerge. First of all the topic of portfolio life cycle and pricing/margin management. Frequently the lack of margin and pricing transparency leads to expanding portfolios. Installing improved life-cycle processes can help overcome these problems. Linked to the increasing trend of on-line sales, service and distribution levels need improvement in combination with product availability. This demands shorter supplier lead-times (often through strategic sourcing and partnerships) and improved inventory management and Sales & Operations Planning (S&OP). As in many other businesses, labour productivity and flexibility to meet demand peaks are essential.

How can R&G help

Clients who are successful in wholesale and distribution have a very clear picture of what drives (and improves) their value proposition to their customers. Their problem is not with the strategy but with execution that leaves something to be desired. Our engagements are generally about reducing costs, improving efficiency (material and labour) and improving customer service. Distribution companies generally have limited overhead costs, and hence they do not have the expertise or personnel to improve their processes.

Biggest impact

  • R&G recommends that the first step be a process audit to determine just how well the outputs from the basic processes meet expectations.
  • Using these audit results we can prepare an opportunity analysis for both cost and service.
  • Lastly we can generate and execute (with your team) an improvement plan to realise these opportunities by focusing on a sustainability plan that requires the minimum amount of overhead personnel.