How we strengthened supply chains for our FMCG client

FMCG B2B Case Study- Strengthen supply chains

Tools- Channels-Partner NPS®

Premise

Our client on whom the case study is based is a leading FMCG company in India. They wanted to evaluate their relationship with key stakeholders, i.e. their wholesalers, distributors, and retailers. We call them channel-partners.

Additionally, they wanted to reduce dependence on incentives as the only means of getting these partners to stock and push their products.

Challenges

Mainly, our client wanted us to help them-

1. Develop a holistic feedback system so that their sales funnel runs smoothly
2. Foster a strong relationship with their channel partners
3. Prevent high volume detractors from churning, and
4. Reduce dependence on incentives as the only impetus for stocking

FMCG is a highly unorganized sector in India. At best, companies have information about wholesalers and distributors. They usually don’t have much contact with retailers, who are the only ones that directly interact with customers.

The Numr Solution

STEP ONE- Bring all wholesales, distributors and retailers together under our ‘Channel-Partners’ program.

As per our recommendation, our client requested all their partners to install our app on their phones. Through this app, we elicited periodic feedback and stock information from the entire supply chain.

Using P-NPS® or Partner NPS®, we tracked

1. overall satisfaction and
2. satisfaction across key attributes (such as pricing, supply reliability)

for all wholesalers and distributors.

STEP TWO- Discover promoters and high-volume detractors

The next step was to identify Promoters (partners who are extremely happy) and Detractors (dissatisfied partners).

To maintain a strong relationship with their promoters, our client furnished them with special incentives. However, it more important to understand the detractors.

After identifying high-volume/ platinum detractors, we used drivers’ analysis to understand the source of the problem.

What we discovered was this.

‘Distribution’ and ‘communication regarding shipment delay’ were the attributes with the strongest negative impact on NPS®. Which means, they were the main problem areas for high-value partners.

STEP THREE- Leverage AI-powered insights to boost the bottom-line

As per our recommendation, our client prioritized the above drivers to proactively solve detractors’ issues. This fostered a partner-centric environment in the organization, where distributors felt that their problems were being heard.

This strong relationship, in turn, boosted our client’s brand equity, reliability, and authenticity.

Result

1. Increased partner NPS® from 23% to 39%.
2. Reduced channels-partner incentive by 8% by fostering a strong relationship.