Customer Development Transformation Delivering Global Growth
A leading food manufacturer with multiple operating companies struggled with variable retail executions due to its massive size and reach. While facing fluctuating and uncompetitive retail coverage costs that would span 1-2% of sales, such ongoing challenges were corrosive to future growth. As a result, the manufacturer tapped TPG to help partner and solve by assessing current organizational variability versus Industry Best Practices. In tandem, developing a strategic roadmap for dramatically improving retail coverage to be more effective and efficient would be a cornerstone for fundamental strength and stability.
We immediately recognized the need for an Organization Performance Model (OPM) to be at the heart of the design. Upon further discover, it was imperative to complete a deep-dive Assessment, Design valuation, Implementation and establish a continuous Renewal system. Through the journey to transformation, we developed cross-division organization and business case analyses, created single “face” to the retail customer model, and integrated a hybrid design. To ensure measurable improvement would be achieved, we partnered with the manufacturer for a 2.5 year span to design, test and implement successful change models. As a separate focus, delivering significant reduction to the SG&A was accomplished through customization of innovative financial modeling. After a significant amount of reinvention, the final facet to delivering sustainable growth came through a customized Best Practice for long-term competitive advantage at the point-of-sale.
Through the establishment of a Global Best Practice within this company, north of 38% increase in customer contact time was gained, greater than 60% reduction in Admin & Travel time was realized, and 1.5-1.8% incremental volume growth was identified. Success continues via the lowest industry cost versus competition at less than 1% of net sales.
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