Why Sales Automation Fails In Dairy Industry?

Why Sales Automation Fails In Dairy Industry?

Sales Automation fails in the dairy industry mainly because of the following reasons –

Perishable Life Of Dairy Products –

Dairy products have a very low shelf life and require special cold storages and demand to be sold out as early as they are produced based on the FIFO method. The dairy industry is vast and the chances of every retailer having a Dealer Management System in place or FIFO method implemented are less, hence sales automation fails in the dairy industry.

Seasonal Variation In Dairy Product Consumption –

The demand and supply of dairy products varies based on seasonal changes, market type, geographical area, traditional festivals of our country. Example: In the winter season, the demand is less for cold desserts. During this time, the automation system should configure discounts and schemes on these products to increase the sale.

Limited Information –

Sales Automation fails in the dairy industry due to a lack of information on pricing, rate, schemes, and discounts. All these factors should be available and configurable based on retailer type, market type, geographical area, traditional festivals. Also, no statistical information about the demand and supply is available to the sales team

Failure In Increasing The Product Range –

To increase the product range, the sales automation system should have a provision that suggests products based on the buying habits, market type, outlet type such that, the salesperson can pitch these products to the retailer based on their buying patterns.

Lack Of Inventory Management Data At Secondary (Retailer) Level –

When there is no visibility of actual stock at the secondary/retailer level in the dairy industry, the automation may fail. It happens when the retailer can’t provide the exact data due to the lack of inventory management at their level.

Lack Of Real-Time Data Of Sales Person –

As the sales team is always on the move for capturing the demand from the market, it is more important for the automation system to track and locate the teams geographically on a real-time basis. It helps to manage the resources more efficiently and improve the efficiency of each resource.

Lack Of Secondary Sales Data In Real-Time & Digital Format –

In the dairy segment, the retailer base is very large as compared to other segments because these products have a high demand on a daily basis resulting in a high number of sales orders which need to be processed for invoicing and delivery. It is at this point, that the automation should provide the sales data in real-time for distributors in the distribution management system from which they can generate the sales information.

Beat Capacity Measurement Merit –

Identifying the optimum capacity for beat planning by studying the physical parameters like travel time and distance between retailer to retailer. Time needs to be spent at the retailers’ end while capturing the order or pitching the products to the retailer. These factors need to be analyzed while setting up the beat plan for the sales team. If the beat plan is scheduled without considering this then it never shows good beat compliance that means a lesser percentage of market reach, resulting in failure of sales automation in the dairy industry.

Master Data Management –

While implementing the Sales Force automation one should take care of the Master Data configuration. It has been observed that many times the automation fails due to poor data management in the system. Providing the SFA as the right solution, the good and proper master data should be the input to SFA for generating desired outputs. If the data issues are ignored, it then creates complexity while resolving data and it may be one of the reasons why the sales automation fails in the dairy industry.

Lack Of Training & Support –

Many organizations are not interested to invest their time and money in training and support. It is the major reason for the failure of sales automation in the dairy industry. The success of the SFA implementation depends on how easily end-users adopt and how comfortable they are while using the solution.

Lack Of Positive Approach To Adopt Automation And Long-Term Vision –

Before implementing the sales automation, business heads should be the part of the decision-making team, so that they present and convince the importance and benefits of adopting the automation for an organization as well as for the sales team. Many companies don’t have their fixed objectives like whether they want sales automation to keep a watch on sales teams or whether the company wants to utilize the data captured from the retailer level to make important decisions.

How Does Kloudq Help?

The following Kloudq features help overcome all the above-discussed problems through:

  • It helps you manage all your perishable items, so you need not worry about seasonal variations and stock expiring at the inventory.
  • AI-enabled Field force application helps you track and communicate with your field force
  • Helps you in continuous replenishment for secondary and primary ordering to ensure zero stock-outs
  • Bolsters the geographical reach of your brand & product range
  • Ensures zero dependencies on your logistics team for order fulfillment and provides real-time data insights
  • Enhances your Beat productivity to reach more retail outlets

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