Boosting growth while lowering cost2serve
The leading ice cream brand in the Nordics uses a direct distribution model that is highly effective but costly. StoreAware helps the team to drive ultra-targeted execution which has not just lifted growth significantly but even helped reduce cost2serve and shrink the truck fleet!
The Challenge
Ice cream is a highly volatile category driven by weather more than other categories. Additionally velocity is high thanks to strong brands and impactful innovations.
Our client utilises a direct distribution model that ensure fantastic control but does come with a high cost per store visit. The challenge was thus how to optimise the entire order taking and fulfilment cycle to have perfect product availability with the lowest possible cost-to-serve.
The Solution
CoolR provided the brand with an integrated eco-system of solutions. The freezers were equipped with Vista cameras and connected to our StoreAware platform. StoreAware was configured for ‘suggested orders’ therefore automatically generating suggested orders on top of near-real-time shelf insights.
These outputs were then fed to the telesales team and the fulfilment teams as part of a new way of working.
The Impact
The Unilever Ice Cream team was incredibly fast to adopt the solution and reaped huge rewards. Van sales (aka ‘hot-sales’) were reduced from 40% to 18% thanks to a shift to much more targeted telesales support. Telesales was equipped with the StoreAware ‘suggested orders’ and thus could make very specific, relevant and successful calls.
The implementation led to an amazing zero wasted visits and in fulfilment the right products were always loaded onto the trucks so even the last stores got the right products they needed.
Perhaps most importantly the StoreAware equipped stores outperformed all other stores by +39% while the total truck fleet was reduced by 15%!
The Lessons Learned
Particularly in route to market models with a high cost-to-serve solutions like StoreAware play out a huge strength and will generate a positive impact very quickly.
Directing teams to the right outlet at the right moment in time will not only drive growth for your business but allow you to reduce your truck fleet, have better capacity utilization and a lower carbon footprint.
Improving your customer service by coming at the right point in time and cutting the time in store will be loved by your retail partners.
