The market leader for frozen food in Germany sells its range directly with 3,000 sales staff in 115 branches. Driven by the discounters, the frozen food market is growing continuously. However, against the backdrop of changing eating and consumption habits and decreasing customer accessibility, the market leader's customer base has shrunk. In addition, the customer base is aging due to the insufficient generation of younger new customers.
In view of eroding margins, the business model had to be modernized with targeted omni-channel management. To this end, the company invested in IT, digitalization, end-to-end merchandise management and more attractive product ranges across the Group. In addition, the sales processes in the branches and the leadership skills of local managers were to be put to the test. It was also necessary to realign the branches as profit centers. For this restructuring in direct food sales, the company management had designated 2 pilot regions with 20 branches in the particularly affected regions (East and South).
After a colleague left at short notice, the current interim manager took over the restructuring project in addition to his responsibility as Sales Director on a temporary basis for 10 branches in the South, which he successfully led through this process for 18 months.
Relieving managers and bundling administrative tasks in sales support
The aim of the sub-project was to relieve managers in the branches of administrative tasks and to bundle these activities with local sales support in the branch. In addition, all sales processes were to be reviewed, optimized, relocated or eliminated in terms of costs and benefits for the customer.
The interim manager took on the task of ensuring complete transparency of all processes on site at the branches in the south. Together with members of the project team, he observed the processes over several weeks, recorded the observations in terms of time and in writing and critically scrutinized all processes for their relevance to customer satisfaction. From this analysis, he derived new core tasks for sales support and adapted the job descriptions accordingly. At the same time, a central inbound call center was set up to further relieve the sales support team and outsource first-level customer inquiries from the branches. In addition, a new telephone system with VOIP was introduced across the Group, which has led to further efficiency gains.
Sales support and works council involved through proactive communication
Many of the customer advisors in sales support had been with the company for more than 20 or 30 years. Here, the new job descriptions were met with skepticism. The interim manager won the employees over to the restructuring by explaining and discussing the "why" for the need for change in many meetings. At the same time, he involved the works council through proactive communication. This made a significant contribution to resolving critical situations amicably, such as parting ways with employees or finding socially acceptable transitional arrangements.
Management team won over for the new branch structure
In order to ensure the leadership skills of the branch managers and district managers (sales team leaders), the interim manager provided these managers with intensive support in day-to-day business over several weeks. Together with the project manager, he also recorded all activities in terms of time and in writing and critically scrutinized their relevance for managing and supporting the sales staff. On this basis, the current interim manager developed job descriptions with new tasks, competencies and responsibilities, which he communicated, trained and monitored together with the project manager on site. During implementation, he successfully applied the "ADKAR" procedure as part of the change management process. The interim manager managed to get the majority of the management team on board and enthusiastic about the new branch structure. In individual cases, however, it was also necessary to make personnel changes in consultation with the CEO.
In order to support the branch managers and district managers as part of the business intelligence strategy, the interim manager initiated an even stronger focus on the key performance indicators in the daily performance report and in the monthly key figures. In regular sales workshops with the managers of the respective branches, the interim manager provided feedback on the status and achievement of the target and action planning - and intervened to make corrections where necessary. He also moderated monthly meetings with the branch managers and district managers concerned to share best practice examples.
Managers' days spent at the customer increase to more than 50 percent
By relieving them of administrative tasks, the managers were once again traveling significantly more to coach the sales staff and make an impact on site. The proportion of days spent on the road rose from 20 to more than 50 percent. This led to a significant increase in sales performance, particularly in promotional sales. The management moved closer to the team again, which also led to greater motivation on both sides. In addition, active selling has increased customer loyalty and improved customer retention, which has increased overall accessibility.
Customers are much more in focus - sales productivity increases
By defining the core tasks for sales support, there is now clarity about the distribution of tasks in branches. Redundant activities have been reduced and sales support scheduling is more flexible. The focus is now much more on customers and productivity in the branch has increased. Even if sales costs have only been reduced slightly, there is now greater transparency about the levers that can be used to increase profitability: the first steps in the right direction have been taken.
