Consumer Goods & Retail Consulting Services
Organizations producing, distributing, and making products available at retail points can be consumer goods companies. Such companies could develop a constraint, in one of the following areas:
Many consumer goods companies are faced with seemingly contradictory issues in the supply chain. Companies tend to have significant stockouts despite presence of high overall inventory, price pressure from the supply chain intermediaries even though price to the end consumer is unaffected, struggle with new product introductions/product freshness at retail points even as old products clog the pipeline. These problems can be attributed to a single source – incorrect timing of creation and movement of inventory. To resolve this issue, consumer goods manufacturers businesses have tried to improve their forecasting methods and tools. Yet they never get it right. However, the solution to this problem lies in a different direction- in questioning the very need of forecasting.
We offer consulting services to consumer goods and retail companies to help them achieve 100% availability at less than half the inventory in the end-to-end supply chain.
For more information on how consumer goods and retail companies can prevent sales loss by ensuring availability, readKnow More
- Improvement of availability to near ~100% in internal warehouses
- Reduction in overall lead time of manufacturing by around 50%
- Increase in output of plants by around 10-25%
- Reduction of overall inventories in the supply chain by about 30-40%
- Improve success rate of new introductions
- Eliminate or reduce need for Inventory liquidation sales
Most consumer goods companies are unable to directly reach all retailers, especially small mom and pop stores and stores that are geographically spread out. To improve reach, such companies usually rely on distributers. However, most distributors tend to cherry-pick retailers in their areas basing their choice on cost of servicing the retailers. They leave out many retailers, unwittingly creating large reach-gaps in many of the companies’ territories. To plug the gap, consumer goods companies then turn to wholesalers. However, wholesalers exacerbate the problem rather than provide real reach. At a loss for ways to strengthen presence in hard-to-reach territories, consumer goods companies often accept the longstanding woe of inadequate reach as ‘unsolvable’.
Vector Consulting helps consumer goods companies to identify highly cost-effective ways of servicing every retail point. Deploying this strategy, companies can strengthen reach with a single-tier distribution network.
Know more about Vector Consulting company’s Go-To-Market strategy that has helped several consumer goods companies to reach out to all potential retailers.Know More
- Exponentially increase number of retailers covered by direct distribution
- More than 100% increase in range of product available at retail point
- Sales growth higher than industry average
- Consistent, near-100% availability of relevant range at all billing/retail points
- Distributor ROI of close to 60-80% compared to industry benchmarks of only 25-30%
Implementation of TOC systems in internal and external distribution of consumer goods companies, creates a situation where movement of inventory is on auto-pilot. In this new scenario, the only way the sales team can drive sales is by focusing on retail points. The load on sales team goes up many folds. The only way to deal with this emergent constraint is to release capacity of sales team and use new methods, structure and processes to effectively identify resolve issues impacting demand at retail points.
To know more about Vector Consulting’s solution for exploiting sales team capacity and to find out how consumer goods companies can profitably reach out to all potential retailers, visit :Know More
- More than 50% increase in sales capacity of the sales team
- Maximize retail penetration
Consumer goods companies having their own retail business, are typically constrained by shelf-space (or working capital). The speed of inventory rotation on shelf space limits the ability of a retail business to make more money. Shelf space of retail stores is, in many cases, occupied by significant quantity of slow-moving stock. At same time, there is stock out of popular products. Together, the impact is sales loss and poor inventory turns for retail outlets.
We offer consulting services to help our clients in the retail business to significantly increase the rate of sales and, simultaneously, release capital for store expansion.
Companies in the retail business have used Vector Consulting’s end-to-end processes of rapid pull replenishment and rapid replacement to solve the problem of stock outs and slow-moving stocks (without hurting their bottom-line).Know More
- Same store sales growth by around 15-20%
- Improve inventory turns by more than 100%
- Increase gross contribution per unit of retail shelf space
- Improve display and freshness of stocks on retail shelf space
New Product Development
After a consumer goods company acquires a lean and agile distribution and supply chain that is capable of delivering high ROI for trade partners, it can experience the next level of constraint in its ability to launch new products. Companies that make new products are often cluttered with far too many projects; their environments suffer a host of issues such as frequent priority conflicts, rework, delays in production stabilization, and, eventually, delays in launch.
Vector Consulting uses flow principles of TOC to help consumer goods companies increase speed of projects, and, simultaneously, release substantial capacity.
Know more about Vector’s consulting services which enable NPD organizations to permanently cure problems such as chronic delays and low output.Know More
- Reduce project lead-time by 33-50%
- Increase output by 30-50% from same resource base
- Reduce rework & improved quality of output
- Rapid production stabilization
- Improved rate of success of launches
- Reduced stress on people and other resources
View these videos to challenge some of the entrenched best practices in the consumer goods industry, to understand the chronic problems these practices have created, and to find a radically new perspective.
At Vector Consulting, we believe that the customary practice of setting sales targets holds back companies from realizing the full sales potential of their markets. Find out why.
In our consulting practice, we have repeatedly seen that volume-based schemes (in the distribution channel) can limit a consumer goods company’s reach and range availability in the market while simultaneously throttling cash flow. Find out how this happens.
There is a deeply entrenched belief in the consumer goods industry that direct distribution to the large population of small retailers is unviable. Therefore, companies try to service these retailers through indirect distributors such as wholesalers. In our consulting assignments, we have repeatedly challenged this belief. Find out why!
Often, materials supplied by the operations teams of consumer goods companies do not match those that the production teams need to fulfil orders. Teams spend copious amounts of time and energy on sourcing (expediting) the ‘missing material’. Vector Consulting has identified the cause of this chronic industry problem. Watch this short video to learn more.
Vector Consulting Group has transformed numerous supply chains using “pull” systems of Theory of Constraints. Companies like VIP, Bajaj Electricals and others have benefited from Vector’s consulting services which have helped these companies acquire a competitive advantage in their markets.
Aligning its operations to the principles of TOC – VIP Industries Ltd.
Indicators Remark Stock availability (branches) More than 90% consistently (from earlier 60-65%) Weekly fill-rates 85% (from 60% earlier) Same store growth rate (co-owned stores) 20% (much higher than the earlier growth rate) Secondary sales (pilot in distribution channel) More than 50% increase (compared to previous sales level)
VIP Industries Ltd is India’s largest and world’s leading manufacturer of luggage carriers. With the help of Vector Consulting, the company grew its top-line and bottom-line by aligning its operations to the principles of TOC.
We have partnered some of the major names in the consumer goods and retail industry to create and implement radical solutions which have redefined industry benchmarks. These include:
Adesh GuptaChief Executive Officer, Liberty Shoes Ltd.
With Vector’s help, we changed the operations to ensure over 95% availability at the central warehouse for more than 5,000 SKUs.Know More