A cross-functional team led and worked on a complex, multi-element holistic Route to Market transformation of the Korean business that has revisited our 3 decades old distribution system. This initiative - Project Sunshine – spanned throughout the entire distribution value chain encompassing General Trade and Key Accounts coverage models, scope and articulation of agreements with our distribution partners and IQOS corner shops operations.  Moreover, it has defined the roadmap to transition our way-to-serve General Trade from a manually intensive Prompt sale to a completely digitally enabled Presale one.  The Project has allowed to realize $26m savings already in FY2021, with further anticipated savings for 2022/2023. 

The team composition shows the degree of cross functional involvement across the organization. Indeed, besides SFS function (Christine, Doreen, Ee Won, Hyeyoung and Patrick in Finance; Marco and Stanley from S&PD), it also includes regular participation of members from Commercial (Field Sales and Planning), Legal and P&C. On a more ad hoc basis, driven by needs requiring the injection of technical competences, also OCS, IT, Procurement and Communication have dedicated substantial amount of time and resources to successfully finalize critical and value-unlocking workstreams. An example of effective collaboration at its best, with many individuals in charge of their respective pieces of deliverable while aiming at the same common goal.    

SFS members displayed all elements of the 5 faces of Finance and S&PD. Working closely with the Commercial team was initially essential to establish common ground and understanding of the trade dynamics. This led to the formulation of a shared view on how to shape a flexible GTM infrastructure to meet not only present needs but also forward-looking developments, where we expect the shifts from General Trade to Key Account and from CC to Smoke Free to continue. 

Hence the identification of areas offering substantial savings opportunities (→Entrepreneur & Strategist). In the immediately following phase, a joint effort still with the Commercial team – and the timely and critical inputs from Legal – led to strategy formulation and kick-off of actual negotiations to revisit scope and conditions of various contracts with service providers. Everything was validated upfront to ensure quality outcome also in terms of accounting and tax implications (→Expert). During the project unfolding, the joint SFS team has played a multi-faceted role, questioning itself and other members on assumptions, timing and magnitude of the opportunity to realize maximum benefits in the shortest possible timeframe while still ensuring the sustainability of the initiative (Challenger). The entire Project has been carried out according to best PMO practices, with weekly working session with PMK MT and regular updates to EA&A RMT, with cadence depending also on most critical decision nodes. Purpose was not only to focus on the exposure of facts / analyses but also coming to the table with proposals to facilitate decision making (Storyteller) or asking for approvals to proceed when deemed necessary.  

Among the outcomes of the Project we can highlight a streamlined distribution set up, a more efficient (and effective) ‘corner shops’ configuration with optimized presence and performance-driven model, the simplification of multi-layered service infrastructures and the launch of digital solutions to enhance our relationship with trade partners. Even more importantly the team has significantly increased its business acumen through the exposure to the operational drivers of an effective GTM strategy, as well as a continuous cross-functional interaction at all levels in a truly project-based fashion.