Sales Planning & Control Process. SPCP is a structured and standardized system for: 1. CVBU Channel Partners to help them achieve: Increased internal efficiencies of the people and its system Lower and Active inventory levels Higher productivity of working capital Higher retail and market share The Objective SPCP is a structured and standardized system for CVBU Sales Officers to help them Have a window to the retail market being catered by dealerships, enabling them To objectively intervene at dealerships as per the need only and thereby allowing them the flexibility of utilizing their valuable time and resources, more productively for Market-expansion and Competition Customer- Conversion. The Objective SPCP is a structured and standardized system for CVBU Sales Officers to help them Do timely retail predictions, enabling them Timely revision of action plans with respect to the target Better planning of billing to dealers thereby avoiding specific model shortages and optimizing Dealer Working Capital . The Objective SPCP is a structured and standardized system for CVBU Sales Officers to help them Do better planning for RSO intakes, enabling Low and active RSO stocks Reduced model shortages and RSO to RSO movements. The Objective In short, SPCP is A way of working for our Dealerships And a tool for Tata Motors Sales officers to monitor, review, control and improve the performance of Dealerships and logistics.
The Objective Area off-take target Dealer wise off- take target Dealer wise retail target setting Confidence? Key Action Plan for bridging Gap Daily/Weekly Control Dealer stock:2 weeks Sufficiency Productivity Efficiency VMS Booklets IT Package Market share Target Current month forecast Process Frame : Pipeline as on 1st day of Retail month Gap Potential of dealer territory Target Setting Retail Process Retail Process . The SPCP incorporates the DMAIC model as elaborated below: Step 1: Define/Create pipeline Step 2: Measure pipeline (Control measures) Step3: Analyze pipeline (Designing pipeline with respect to target) Step4: Improve pipeline (Key action plan for all four stages with respect to target) Step5: Control pipeline ( Monitor and review through prediction & potential) C0/C3 in pipeline : Are those C0s or C3s from the bucket, who have been contacted. C1 : A customer who has taken pro forma invoice/quotation The Retail Process Define / Create Pipeline Pipeline & Customer Data Base C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C0 C3 C3 C3 C3 C3 C3 C3 C3 C0/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3 CO/C3 CO/C3 C1 C1 C1 C1 C2 C2 C2 C3 C3 CDB Bucket
C2 : A customer who has decided on a model and has given some financial commitment such as token advance or L.O.I. from financier. C3 in pipeline : A customer who has taken delivery of our vehicle in the current retail month. The Retail Process Define / Create Pipeline
Pipeline & Customer Data Base So, total CDB = C0s in bucket + C3 in bucket+C0/C3 in pipeline+C1+ C2+ C3s in pipeline Market Coverage Plan Sample F006 FOO6 has been designed to help a sales person in planning his visits,Keeping track of customer movement through different stages apart from providing ready reference oa a customer in terms of his telephone nos., starting category, model he is interested in and the location he is based at. Example; For Pipeline Status on Dealer Retail Closing Date (DRCD)
A process aims at establishing the rule of measurement to do away with gut feeling in deriving a solution.Since Skill, Time and Loss of conversion between any two consecutive customer stages are vital parameters, we need to eliminate any subjectivity and ambiguity in their evaluation and therefore the following Control Measures have been designed. Target-30 The Retail Process Measure Pipeline C0/C3 100 C1 67 C2 3 C3 30 Measurement of Skill of conversion : Four Control Measures The Retail Process Measure Pipeline
Direct Control Measures: These are derived ones and are used for retail prediction. The Retail Process Measure Pipeline C0/C3 100 C1 67 C2 3 C3 30 90.9% 33 % 50% C1 to C3 Conversion factor : C3 / (C1+C2+C3) =30/100 =30% Or (CF C0-C1) X (CF C1-C2) X (CF C2- C3) C0 to C3 Conversion factor: C3 / [C3+C2+C1+(C0/C3)] = 15% Or (CF C1-C2) X (CF C2- C3) 15% 30 % Step 3 : Analyze / Design Pipeline:After measuring, one needs to know the required number of customers in different stages of pipe line, in order to achieve the retail target.The figure below indicates the flow path of the customers through 4 stages : The Retail Process Analyse / Design Pipeline Here, we define :C1*- as the minimum no of C1s required to meet the current months retail target & C0*/C3* as the minimum no of C0s & C3s required to be contacted for achieving C1*
C0 C0 C0 C0 C3 C0 C0 C0 C0 C3 C0 C0 C0 C0 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C3 C2 C1 C3 (Target ) C3 C3 C3 CDB Bucket (C0/C3) For a retail target of 50,the following example illustrates the calculation of Designed control elements. Let us take the previous pipeline with its conversion factors
The Retail Process Analyse / Design Pipeline
C3 0 C2 3 C1 67 C0/C3 53 30% 50% 91% 3 x 0.91 +(C1*) x 0.3 = 50 C1* =158, The gap =C1*-C1= 158-67= 91 Target = 50
C0*/C3* =182 0.5 SO, 182- 53 =129 NEW CUSTOMERS (I.e. the customers who are not in the pipeline) & a total of 252 CUSTOMERS (129+53+67+3) need to be covered during this month. The Retail Process Analyse / Design Pipeline * It can be taken from VMS or pink booklets and can be calculated as: Total Visits by the dealership
Total customer coverage by the dealership
Calculation of Visit/Day requirement:Total CUSTOMER COVERAGE required by dealership=252 Visits/customer required in a month = 4 (From past months figures*) So, Total visits required = 252 X 4 = 1008 For 25 working days in a month, Visits/Day required by Dealership= 1008 / 25 = 41. There are 5 sales executives in the Dealership, Avg Visits/day/SE = 41 / 5 = 9. The Retail Process Analyse / Design Pipeline Imp.Note: Coverage of all 129 new customers shall be completed in the first 10/12 working days from DRCD. This is because of the Time of Conversion required for converting customers from C0 to C1 to C2 to C3. Step 4: Improve Pipeline After completing Design stage, we have two informations: i. Pipe-line status as on 1st day after DRCD(I.e. after filtering) ii.Designed Pipe-line(Refer DPS-01) Now the next logical step for DAM is to address the gap between two pipelines through relevant Sales & Marketing activities using Key Action Plan Format KAP01. This exercise shall preferably be done along with Dealer Sales In-charge. The Retail Process Improve Pipeline A B C D E F 3 Tele-marketing 5 27 Mr.P 15.12.01 To focus on FMCG distributers. segment.60 Tele-calls per day. 3 (C0/C3) to be generated per day 5.12.01 (5th day after DRCD) By When Strategy (Monitorable Parameters) Follow up with concerned financiers for faster release of DO 4 2 30 Mr.Z Demo of FES 407 5.12.01 (5th day after DRCD) Key Action Plan (KAP01) Target :50 C2 =3 3 3 Mr.X Sl.No What To Do 5 1 By Whom Expected Retail (C3) Current month Location x & y.with 25 nos. of customer coverage at each location. 2 C1=67 19 22 Mr. Y 55 DAM( Sign.) DSM(Sign.) 7 The Retail Process Improve Pipeline 1.The format here is essentially a Kaizen format, where each column has a discrete purpose such as: What to do(Column B) -List of Sales & marketing activities corresponding to prompts in DPS01 as well as till the cumulative expected retail reaches 10% more than the target. Exp. Retail(Column C) -This is essentially to focus that each activity is a cost to Dealership or Tata Engg. Or both.One must therefore, try to assess the effectiveness of the activity By Whom(Column D) -The person who will ensure the execution on time.Two names shall be discouraged. By When(Column E) -Essentially to make sure that all activities,primarily related to: C0 to C1 : Shall be completed by 10 th / 12 th day from DRCD C1 to C2 : Shall be completed by 18 th day from DRCD C2 to C3 : Shall be completed by 22 nd day from DRCD The Retail Process Improve Pipeline C0/C3 to C1(Prospect knowledge & selection of Prospect skills) a) Availability of exhaustive Customer Data Base b) Selection of Quality C0s for the pipeline. The following would help: Customer segmentation across territory. Knowledge of customer buying behavior. Knowledge of environment, e.g. Upcoming industry,opinion leaders,freight rates etc.. c) Quality of C0 coverage through a well designed market Coverage plan. d) Meeting customers, understanding their application needs& suggesting viable product type. e) Ensuring re-buys & spread good word of mouth through customer retention skills, such as : During and after sales Care, concern & importance to the customer Performance follow-up of the product The Retail Process Improve Pipeline Tips for conversion factor improvement: C1 to C2 (Product knowledge & selling skills) a) Availability of Sales kit and driving experience of vehicles. b) Qualifying C1s in terms of C1A & C1B(A: buy in this month,B: buy in next month) c) Pitching right product. d) Technical clarifications in terms of Identified customers application needs 5 good points of our product & 5 negative points of comparable competitor product. e) Discussing comparative economics: operating & life cycle f) Offering financing options. g)Selling value added services,e.g.AMC. The Retail Process Improve Pipeline C2 to C3(Deal closing skills) a) Negotiating release of delivery note with financiers b) Managing DWC and vehicle inventory. Following marketing activities can be included in KAP-01 Mailers Telemarketing- Paper Advertisement Road Show Referral coupons Free Service Campaign Tie up with mechanics Segment wise market coverage
Local media advertisements Stickers on serviced vehicles. Tie up with spare parts distributors. Vehicle Demo. Loan Mela. Exchange Mela Testimonials from satisfied customers. Tie up with body builders Various financial schemes: Between dealers & financiers Between TML Dealers &financiers Customer meet. Financier Meet.
The Retail Process Improve Pipeline Step 5: Control Pipeline After having planned KAP01, the aggregated results of its execution in terms of retail, need to be reviewed weekly in order to make necessary corrections, if required, in KAP01. This is done by checking the potential of the retail pipe line and predicting the retail. Prediction = Potential with TOC (Time of Conversion), as we work on monthly basis. The Retail Process Control Pipeline
The Retail Process Control Pipeline Also Since conversion factors are function of time, fixed Dealer Retail Closing Date is prerequisite for accurate prediction. Two Control Measures:
a) C1*-C1= 0 by about 14 th day after DRCD b) C2 X (CF,C2 to C3)+C3= Target by 25 th day after DRCD
Imp Note: These give us two additional monitoring points during the retail month. Prediction acts as a feedback signal allowing us to modulate inputs as per the requirement well in time.In other words,it makes the system closed loop as shown below: The Retail Process Control Pipeline
Out Put (Retail) Pipe Flow KAP01 Execution DPS-01 Follow-up VMS Follow-up In Puts System Prediction Feedback 1. CC/Tgt 2. Loss% 3. C0-C1, CF 4. (C1*-C1) Gap 5. C1-C2, CF 6. C2 X (CF, C2- C3)+C3=Tgt 7. C2-C3,CF Key A c t I o n Pla n 1. Retail Prediction: Using conversion ratios, monthly retail can be predicted on any given day as explained. 2. Managing stocks & logistics: 3. Tool for performance comparison using control measures Dealership CEO can compare the performance of different branches (or Dealer Sales Managers) under him for corrective intervention. Dealer sales Manager can do the same for the sales executives under him. Area Managers can do the same to his TSMs. Regional Manager can do the same to his AMs.
Important Applications: SHQ RM AM/RSM TSM Dealer Sales Manager Dealer Sales Executive Presently through E-mail/Fax Finally through CRM package Booklets Pink Booklet Blue Booklet Yellow Booklet Information flow and monitoring Tools: 1. Booklets: Booklets are designed for planning market coverage, monitoring customer progress in different stages(pipe flow),recording results of sales activities conducted & performance review through control measures. These booklets have been standardized for uniformity in use(refer annexure) Pink : For Sales Executive Blue : For Dealer Sales In-charge Yellow : For TSM VMS Thank You