Improvement of sales distribution process in a dairy sector company using the impact-feasibility matrix

Abstract

The present study addresses the challenges faced by a dairy company in the distribution of sales in the northern region of Peru. Through the implementation of the Impact-Feasibility Matrix engineering tool, the company was able to select the best option from those generated in a brainstorming session by ranking various factors. This led to a 14% increase in gross sales, a 64% reduction in sales discounts, and an enhanced negotiating power and commercial strategy compared to the distributor, resulting in a 16% increase in net sales. With the improvement of sales indicators and cost reductions, there was a 29% increase in gross profit and a 10% increase in operating profit. Previously, distribution was managed by a supplier facing working capital issues and insufficient service to retail customers, allowing competitors to gain market share in a sector primarily served by retail channels. Following the process improvement in this area, it was concluded that it is more feasible and impactful for the company itself to manage the distribution to the retail channel, replacing the outsourcing company. This implementation demonstrated a clear improvement in commercial management indicators.