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FMCG Major evaluates Distribution Management Software for its Distributors across India

About Customer

The customer is into manufacture of house hold items and oils. It has 400+ distributors pan India and these distributors service the outlets in both urban and rural areas at different cities. Its business is growing rapidly over the last few years and there is an aggressive business plan to continue growing sales and expand distribution operations pan India.

Business Situation

The customer is using SAP for its internal operations and the distributors are using their own distributor applications for their day to day business. The secondary sales & inventory information are currently captured through excel sheets on weekly basis. Customer engaged VELCOM to identify & evaluate the right distributor application for its distributors, which will also provide complete visibility of secondary sales and inventory information. This would be interfaced with the internal SAP application as well.

Distribution Structure

Key Challenges

  • Data Visibility
  • No Visibility of distributor’s inventory & sales information
  • No visibility of market penetration in terms of – to which outlet the billing has happened & number of outlets the billing has happened
  • Master Data
  • Master data are locally created by distributor’s with their own codes & descriptions and are not standardized for data consolidation
  • Codification
  • No standard codification for distributor outlets

Solution

VELCOM executed this project, which involved the following phases:

  • Initiation Phase
  • Preparation of Project Plan
  • Set up Project Team Structure
  • Definition Phase
  • Customer Business Requirements Finalization
  • Vendors Identification & Pre-qualification
  • Request for Proposal (RFP) Preparation
  • Risk Management & Escalation Plan
  • Scope Change Management
  • Collate & Compile Phase
  • Float RFP to vendors
  • Provide RFP Clarification to vendors
  • Collate RFP Responses (including Product demonstration / presentation) from vendors
  • Analyze & Compile the RFP Responses from vendors
  • Deliver Phase
  • Present the Report (including recommendations, TCO etc.,) to Customer

The entire project was completed in 3 calendar months.

Key Benefits

VELCOM guided the customer in the following:

  • Goal setting to identify & finalize the key business requirements for the project
  • Total Cost of Ownership (TCO) plan to realize complete benefits of its distribution management software project investments
  • Comprehensive Product / Vendor evaluation & selection process to identify, shortlist, evaluate, negotiate & decide the right Vendor for its distribution management software project.