Motivation: This project is motivated by the need to reduce high distribution costs and to reduce sales coordination problems in multi-level distribution channels, in particular in the automotive sector, but also other industries. With increasing globalization, manufacturers rely on distribution channels – comprising national sales organizations, independent distributors and retailers – to sell their products on local markets. Therefore, many manufacturers relying on these distribution channels suffer from high distribution costs as well as coordination problems, which reduce their effectiveness and efficiency.
Project Objectives: This project aims to conceptualize, design and implement an innovative approach for real-time sales planning and performance management (SPPM), which takes into account the reality of multi-level distribution channels. In this project, we are first taking the automotive industry as specific domain of study, while other industry will be investigated in a second phase. As a proactive approach, SPPM makes use of process-oriented KPI to assess sales performance, instead of result or revenue-oriented KPIs. It aligns top-down and bottom-up performance management, thereby coordinating key sales activities and targets of the different stakeholders at retail, wholesale and manufacturer level.
In this project, we are looking into cloud computing and mobile technology as main pillars to design and support the functionalities of SPPM. Additionally, we are investigating in-memory computing in order to provide an easy-to-use tool for real-time sales planning and performance management to sales employees and managers.
Duration: : 24 months (April 2014 – April 2016)
Team: Christine Legner, Thomas Boillat, Andrea Giessmann
Partner: Commission for Technology and Innovation, proaxia consulting group, CMT