Defining the future vision of a SME sales and distribution channel
At a glance
JDE aimed to define a long-term vision for its primary SME sales channel, Routesales
IG&H facilitated scenario-driven workshops with JDE subject matter experts to explore strategic options
Over the 8-week project, several high-impact initiatives were identified to enhance operational efficiency and accelerate revenue growth within Routesales
JDE was equipped with a concrete, actionable roadmap to execute the envisioned future of the Routesales channel with confidence
JDE's primary sales and distribution channel for SMEs in the Netherlands is Routesales, a door-to-door distribution model that excels in fully unburdening customers by visiting them at standard intervals, restocking to their requested levels and building strong relationships. However, Routesales faces several challenges, including a steadily declining customer base and numerous inefficiencies such as manual processes, paper-based workflows, lack of internal alignment on the team's purpose and poor communication with other departments. As a result, JDE believes significant resources are being wasted. IG&H was asked to develop a sustainable strategy for Routesales that addresses both current and future market conditions.
Reinventing JDE’s Routesales: Driving Efficiency and Revenue Growth for JDE's SME Channel
After gaining insights into the current operations and value proposition of the Routesales channel, we hosted several scenario-driven workshops with JDE’s subject matter experts. These workshops brought together experts from finance, pricing, operations, sales, digital, SME leadership, and the management team to review our findings and provide input on the defined future scenarios. As a result of these workshops, several key initiatives were identified to enhance the efficiency and revenue potential of Routesales:
1. Increase efficiency by raising the value per order, introducing tools to optimize ancillary activities, centralizing and automating routing and redefining the team's role structure.
2. Leverage time savings to drive additional sales activities, such as cold sales visits to neighboring businesses, and service activities, such as water filter changes and machine cleaning.
"Expert, fast, and accurate. A great collaboration, maintaining continuous contact to ensure clear goals and the ability to adjust in a timely manner. Completely satisfied from A to Z"
Eveline Drenth | Manager SME & Partners at JDE
Our analysis revealed how the required investments, time and cost savings for Routesales will evolve over the next three years, allowing for strategic timing in implementing additional sales and service activities. The project demonstrated that JDE could optimize the distribution channel with a smaller workforce, while enhancing its value by incorporating new activities. Additionally, the financial analysis showed that, despite existing inefficiencies, Routesales remains a highly profitable channel, with alternative channels only becoming more profitable at very low-volume visits.
