Distributor Alignment & Performance
| CLIENT PROFILE |
| INDUSTRY Manufacturer Industrial Equipment |
| SIZE $125M Sales at Engagement |
| GEOGRAPHIC MIX 75% North America |
| MARKET POSITION #3 |
| UNIQUE LINES OF REVENUE 4 |
| CHANNELS TO MARKET Direct Sales, Value-Added Dealer Distribution, Rental, Online |
| 3-YEAR CAGR AT ENGAGEMENT 6% |
| BACKGROUND |
| Client, an established industrial manufacturer invested heavily in their 3rd party distribution channel but had little to no influence over distributor operating profiles and investment decisions, constraining the clients objective for accelerated growth. CE2 was engaged to assess the financial and operational capabilities of the distributors and develop sustainable programs that align with the client’s commercial objectives, ensure distributors can meet growth capital requirements, and positively impact the value of the distributor businesses. |
| OBJECTIVE |
| Establish and implement distributor-level, market-moving themes and KPIs that align with the client’s objectives, including an overarching management process that engages and informs the client and its distributors on KPI performance, planning, decision-making, and investments. |
| PROJECT DRIVERS |
| Strategic Objective: Organize a diverse group of distributors and distributor capabilities around the client’s objectives, supported by a shared vision of market-moving activities. |
| Economic Objective: Achieve accelerated EBITDA growth target |
| DELIVERED |
| Surveyed distributors to baseline performance, operational capabilities, financial strength, and success and failure factors when selling client equipment. Organized and synthesized findings. |
| Based on distributor assessments and inputs, client perspectives, and CE2 insights, recommended themes and KPIs to carry forward and become the measurement and performance framework for ongoing discussions with its distributors. |
| Recommended an overarching management system that engages client and distributor leadership across a broader framework of KPIs, more accurate data, and insights yielding greater decision-making value |
| Develop pro forma estimates of economic value creation from the project. |
| Prepared client sales operations to execute and supported rollout to distribution. |