Problem

Our client, a global eEuropean manufacturer of paper products, was operating in a Central American country with an out of date exclusive distribution model.  The regional manager believed it was necessary to evaluate the situation because they were not reaching their sales objectives and were at a disadvantage against their closest competitor, Kimberly Clark.

 

Solution

Baeza & Asociados was hired to redesign the distribution channel model used by the company with a turn key process. The design consisted on having our client take control of each core part of the chain; sales, marketing, receivables, and have outsourcing logistics to a a third party logistics (3PL), which at that moment was an innovative solution for Latin America. Baeza & Asociados took responsibility for each part of the process; hiring the staff, the selection of the 3PL, installation of an ERP, creating a new network of distributors, pricing, etc

 

Result

Sales increased 300% in 20 months, with a reduction in distribution cost from 17.5% to 11% of sales and a recovery of investment in 15 months.