Last Mile Asset Light Distribution Model 

1. Nomination write up – Amit Misra 

This project was selected because it is a great example of how we can bring innovative thinking and cross-functional collaboration to address key business opportunities. The Brazil team identified the opportunity to optimize RTM in Brazil by leveraging external partners in an asset light fashion, and then set up a cross-functional team to identify potential solutions in an agile fashion. The impact of this project is not just on optimization of existing RTM/DSD network, but will also be key in terms of market’s expansion plans in areas of Brazil where PMI is not strong today, as well as providing a blueprint that other markets can follow. 

2. Introduction to the project and team 

Three words can define the Asset Light Model project: multi-functional, collaboration and innovation. The initiative was born in one of Brazil’s first agile squads – dedicated multi-functional teams working under Scrum framework. The project team includes participants from Sales, Distribution, IT, Financial Planning, Order-to-cash and Tax and was highly supported by Strategy, Legal and IT. The mission was to find opportunities to reduce cost-to-serve and improve customer experience through an asset light model. After several experiments and MVPs, the team was able to find a significant opportunity by introducing a third-party delivery for the last mile logistics and use our current distributors (EZDs) as logistic service providers through centralized ecommerce and telesales. 

2. Value created for the business and role of SFS team 

    

The value delivered by the team had a significant impact to Brazil’s business. 

• Improved master data process as registration of new customers went from 13 days to 5 minutes, increasing considerably the accuracy, speed to market and customer experience 

   

• Integrated of our network with last mile delivery partners through API, allowing PMB to partner up with different logistic service providers, rolling out this asset light solution to 3 major states of Brazil, already accounting for roughly USD 600k of cost saving year-on-year which will represent over USD 1.8 mio in 3 years 

   

• Prepared logistics structure to connect LSP for RRPs 

   

SFS team played a key role in making sure the project, from concept and experimentation to actual scaling up to the entire market, were a success. 

• Financial planning had a dedicated resource working as a member of the squad and being true business partner, acting as a ‘finance evangelist’ of the team, supporting with profitability analysis and deal evaluations 

   

• OTC team was a key figure in designing the best billing experience and connecting dots with sales and IT team: SAP Billing 55% faster, new tracking and picking format, enhanced supplier, and distribution experience, a “plug and play” scalable solution by distribution center and dynamic order filtering by sales and payment types. 

   

• SD&P team supported the project throughout all phases: from definition of the challenge, allocation of the team (people and resources), training in new ways of working and FFWD, using agile and Scrum as a framework, and fostering experimentation, all the way to help and coordinate the creation of business case for capex and funding’s release, through project execution, building a solid governance process with financials and KPIs tracking.