At a Glance
- Nationwide distributor in the Philippines was facing challenges with inefficient sales operations, supply chain constraints, and rising inventory levels.
- Renoir Consulting partnered with the client to deliver measurable transformation across management practices and operational efficiency.
- Achieved over 15% inventory level reduction, enhanced trucking and delivery efficiency by more than 5%, and drove a 10% increase in sell-out performance.
Key Results
- Return on Investment (ROI) ≥ 1.8:1
- 10% improvement in sell-out performance
- Over 5% increase in trucking and delivery efficiency
- 15% reduction in inventory levels
- Enhanced planning capabilities for order frequency, safety stock, and sales targeting
- Improved effectiveness of Key Account Managers (KAMs), merchandisers, and distribution managers
- Implementation of a closed-loop Management Control System (MCS)
Background
The client, a Philippine-based subsidiary of a larger conglomerate, operates as a nationwide distributor of fast-moving consumer goods (FMCG), particularly within the hygiene and personal care segment. Since its establishment in the 1980s, the company has become a key player in the baby care, feminine hygiene, and geriatric care markets. Its portfolio includes well-known products like disposable diapers, sanitary pads, and paper tissue products.
With a vision to uplift Filipino lives through better hygiene, the client faces stiff competition from global FMCG giants and therefore prioritises operational agility and cost efficiency as critical to sustaining growth in a dynamic market.
Analysis
The client was looking to evolve into a high-performance organisation capable of competing with multinational corporations such as Procter & Gamble and Kimberly-Clark. However, they were hampered by several inefficiencies:
- Sales and marketing processes lacked structure, particularly in sales planning and debriefing routines.
- Merchandiser performance was inconsistently monitored, causing accountability gaps.
- Truck planning was reactive, leading to delivery disruptions and suboptimal utilisation of transportation assets.
- Inventory management was fragmented, with safety stock calculations lacking critical variables such as promotional demand or seasonality.
- Marketing ROI was unclear, with event-based tracking and year-end assessments either incomplete or absent.
These compounded issues prompted the client to engage Renoir for a full-scale operational transformation initiative.
“I think the Renoir process is worth the investment, especially for companies that have the courage and the commitment to change for a better future.”
– Senior Vice President
Project Approach
Renoir designed a comprehensive intervention plan, structuring the project into two parallel workstreams: Sales & Marketing Transformation and Supply Chain Optimisation.
For sales and marketing, the focus was on improving planning and field execution, while in the supply chain, the objective was to reduce waste and enhance delivery precision.
Key strategic aims included:
- Implementing a Management Control System (MCS) to ensure visibility and accountability across all levels.
- Restructuring operational processes from order to invoice.
- Enhancing KAM and merchandiser performance through structured training, planning, and feedback loops.
- Improving the inventory categorisation and replenishment logic.
- Redefining truck loading parameters and optimising routes based on delivery constraints.
The overarching methodology focused on capability building, ensuring that systems would remain sustainable post-project.
“Renoir’s approach is leading us to the next level of doing business.”
– Vice President for Finance
Implementation
Renoir deployed a full-time consulting team to work alongside selected internal change champions from the client’s organisation. This collaborative approach helped embed new practices and tools into day-to-day operations. Implementation was tackled in stages:
Management and Planning Systems
- A one-page Management Control System (MCS) was established to facilitate weekly planning, KPI tracking, and operational reviews.
- Weekly meetings were revamped to support continuous improvement, targeting sales activity alignment and KAM performance evaluation.
Operational Enhancements
- Sales call planning and post-visit debriefing became standardised across KAMs and merchandisers.
- Developed a coaching programme for KAMs, Coordinators, and Distribution Managers, with defined performance criteria and time management practices.
Inventory & Logistics Revamp
- Re-classified inventory into fast-moving and slow-moving stock, improving forecasting accuracy.
- Introduced robust safety stock calculation methodologies, taking into account current sales trends, seasonal demand, and promotional uplifts.
- Reviewed and restructured truck loading efficiency, planning routes more effectively, and introducing delivery windows and loading constraints.
Marketing and Spend Effectiveness
Designed a new framework for tracking marketing events and their outcomes, ensuring budget allocation is tied to tangible ROI.
Results
Sales and Marketing Impact:
- Sales increased by 10%, driven by clearer sales targets, stronger field team execution, and better integration between merchandisers and KAMs.
- Enhanced ability to capture and consolidate field intelligence, which informed weekly planning and eliminated month-end sales surges.
- Sales calls became more effective due to structured planning and review practices.
Supply Chain Improvements:
- Truck and delivery planning became more robust, achieving a >5% improvement in logistics efficiency.
- Inventory management has evolved from a reactive to a predictive approach, with 15% less stock held while ensuring product availability across all channels.
- Delivery disruptions decreased, improving client satisfaction and supporting revenue consistency.
Operational Excellence:
The MCS provided a transparent and standardised way of managing performance, fostering ownership and proactive problem-solving across business units.
*Client-specific details have been intentionally omitted to maintain strict discretion.
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