| Case 7: A North American Real Estate Company engaged in Residential Township Development for Social Income A Class
Illustrative Scenario: Using a team of large team of prospectors and closers to sell homes to individuals (Direct Selling)
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Before |
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After Distribution Solution
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- The conversion rate was around 20%
- Only 10% of the sales force being productive
- Demotivated sales force
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- No more orders
- Forecast only if channel expects any institutional order and during season
- No more push, supply only based on consumption.
- Inventory down to an average of 15 days at Distributors end and 10 days at Retailer end
- Sales focus only on secondary and tertiary sales
- Stock-outs below 2%
- Increase in sales by 40%, profits of the company doubled. Further increase in price by 5%
- No more quota pressure on sales people
- No more rationing
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