Challenge
One of the world’s largest packaged snack food companies was losing millions of dollars each year servicing its small store accounts due to the high costs and inefficiency of traditional truck delivery to mom-and-pop convenience and off-route stores. In addition, store owners were not given proper customer service or purchase options. The sole inventory options for store owners was to purchase whatever happened to be left on the truck that day, creating a very frustrating customer experience.
This inventory replenishment method was not only a hassle, but it limited the profitability of both the store owners and the packaged snack food company. Servicing these accounts was necessary from a marketing and customer service standpoint, but it was not rational from a logistical point of view.
Unable to reach a satisfying agreement with its small store accounts, the snack food company was forced to cancel the accounts until a more viable solution was available.
