Is the traditional FMCG service investment model still relevant and working?
It’s time to rethink the FMCG retail service investment models.
The traditional retail service investment model is just not fit for purpose anymore with increasing retailer centralisation. I often see a misalignment of infield, category and key account management resources which holds Suppliers back from being successful.
It’s time balance our investment in resources and swing it toward retail decision makers.
I’m certainly not suggesting divesting field resources completely as that would be disastrous. I’m suggesting a better balance of resource investment. Retailer centralisation means that winning at category is not optional, its mandatory.
Winning in FMCG requires high-quality category and key account management, gaining ranging and implementing product programs that beat the competitors. This is now the battleground. The role of field sales teams has changed to program compliance, driving discretionary displays and ranging whilst monitoring and feeding back key market insights.
This is how we think about FMCG Retail resource investment models:
The new model demonstrates a more balanced resource investment approach which Storelink implemented four years ago, and it’s been a game changer.
Moving to a new model is tricky but there is another solution that many of our partners have implemented. Consider an FMCG Agency partnership and tailor a service model that fits your needs. For example, many of our partners have given us full responsibility for key accounts and field while others retain and invest in category and key account capability.
