-1-MUC-0040-00001-01-16aChannelPortfolioManagement–Efficientmanagementofsaleschannels–ToolMunich,August1999RolandBerger&PartnerGmbH–InternationalManagementConsultantsBarcelona–Beijing–Berlin–Brussels–Bucharest–Budapest–BuenosAires–Delhi–Detroit–Düsseldorf–Frankfurt–Hamburg–Kiev–KualaLumpur–LisbonLondon–Madrid–Milan–Moscow–Munich–NewYork–Paris–Prague–Riga–Rome–SãoPaulo–Shanghai–Stuttgart–Tokyo–Vienna–Zurich-2-MUC-0040-00001-01-16aThisdocumentwascreatedfortheexclusiveuseofourclients.Itisnotcompleteunlesssupportedbytheunderlyingdetailedanalysesandoralpresentation.ItmustnotbepassedontothirdpartiesexceptwiththeexplicitpriorconsentofRolandBerger&Partners.ContentsPageA.Statusquoinsaleschannelmanagement3B.Overviewofchannelportfoliomanagement101.Channelselection112.Channelconcepts283.Channelmanagement42C.Organizationalconsequencesofchannelportfoliomanagement60-3-MUC-0040-00001-01-16aA.Statusquoinsaleschannelmanagement-4-MUC-0040-00001-01-16aQuotesfrompracticalexperienceshowacertainunprofessionalitywhenitcomestothemanagementofsaleschannels–greatefficiencypotentialexists•"Onlyfewfirmshavearealsystemofsaleschannelmanagement"•"Inourcompany,onlytheHeadofSalesdoesanythingaboutsaleschannelmanagement–ifatall"•"Inmarketing,weconcentratetoomuchonminorregionaldifferences,thereisnosystematicdifferentiationaccordingtosaleschannel"•"Theincreasingspecificrequirementsofthechannelsareonlymetbyasmallnumberofcompanies"•"Thebottomlinebenefitofalternativesaleschannelsishardtosee"Source:Interviewsonthemarket-5-MUC-0040-00001-01-16aFundamentalchangesonthemarketmeanthatefficiencyand'muscle'insaleshastoberaisedinparallelFundamentalmarketchangesMakingsalesmoreefficientandpowerfulIncreasingconcentrationinthecompetitivelandscape,increasingcompetitionCompaniesaredifferentiatingthem-selveslessviaproductsandmorethroughtheirorganizationBesidestheproductbusiness,systemsbusinessisbecomingincreasinglysignificantCustomersarelessloyaltobrands,morereadytoargueonpriceDP/logisticssystemsforsalessupportarebecomingincreasinglysophisticatedTechnology-drivenchangesinthemarket–transparency,speed,know-howmanagementIndividualmarketsarebeingderegulated,suchastelecomsandautomotiveCompaniesareconcentratingmoreontheirmainsalesagentsPurchasingisbecomingmoreprofessionalandinternationalSource:RolandBerger&Partners-6-MUC-0040-00001-01-16aTheefficiencyandpowerofsalescanberaisedviafourmethodsinanyindustry–complexityincreasesfromonecasetothenextSource:RolandBerger&PartnersKeyissuesinsales"Internallystreamlined""Optimizedinvalue-addedpartnerships""Externallydifferentiated""Innovativesalesforms"IIIIIIIV•Centralizing"non-critical"administrativefunctions•Cuttingdownondecentralizedinfrastructure•Eliminatingregionalmanagementstructures•Optimizingbusinessprocesses,e.g.offer/orderprocessing,pricing•Developing/extendingsophisticatedcomputersystemsinSales•Europeanizinghandlingfunctions•Initiatingpartneringconceptstailoredtotheindividualclient•Introducingperformance-orientedtermssystems•Optimizingthepartsofthevaluechainsharedwithretail(EfficientConsumerResponse-ECR)•Settingupmultifunctionalsalesteams•Launchingcategorymanagementfortheoptimizationoftheproductrange•etc.•Structuringsalesorganizationaccordingtosaleschannels/targetgroups•Creatingchannel-specificofferandmarketingconcepts•Systemat...