CPG sales leaders, either on the brand side or the broker side are all too familiar with the retail execution dilemma.

On the brand side, nothing is fast enough and there is inherent skepticism whether brokers are managing store level execution well.

On the broker side, the margins are thin and brands expect a lot but continue to squeeze margins lower and lower, making it difficult for brokers to put enough boots on the ground and serve the entire portfolio that retail needs.

This back and forth game where brands create initiatives and goals, then going back to motivate (or “beat up”) the broker to raise their execution levels has created friction for years.

Yet despite great effort and pain on both sides of this model, CPGs continue to suffer from huge store level execution gaps. Looking at on-shelf availability rates combined with compliance for both promotions and shelf sets, we estimate that over 40% of retail trade spend is not activated — simply due to missed execution.

Is this the brokers’ fault? Is this this CPG sales team’s fault?  Is it the distributor’s or retailer’s fault?

It’s none of the above. It’s simply due to a vastly outdated and underpowered system of retail execution.

The blame game in part has taken some of the industry leaders’ eyes off the ball. For many, they continue to ask whether they can achieve brand success and superior execution speed simply by playing the same game: hiring better, managing better, working harder and out executing our competitors.  But, will this really work?

Partly yes, but the world is changing. Forces like Amazon, shifting millennial buying preferences and an explosion of competitive options are forcing companies to find a new, better way, and fast!

The most compelling reason is even more simple.

Predictive Retail Execution is changing the Retail Brokerage Business

In most modern industry practices, 40% “wasted spend” is an unacceptable metric.  But it turns out that this waste metric also provides the fastest path to sustainable sales growth, an essential roadmap for the most successful Sales leaders.

So what’s the game changer? The answer is simple. Predictive Retail Execution (PRE).

Using data, PRE directs networked, fixed route and dynamically routed CPG / Broker teams to spend their next hour of time on the activities with the highest value at the right Customers. This forward looking approach to focusing the entire team where the prize is biggest, instead of slowing them down with more administrative work is a strategy that is guaranteed to result in an immediate sales lift.

If you’d like to learn more and review which brokers are putting this into action reach out.