Leading Bottler Leverages Optymyze Know-How
The largest independent branded soft drink bottler in North America produces, sells, and distributes approximately 300 different SKUs to stores, restaurants, entertainment venues, offices and college campuses. Publicly traded, with more than $1 billion in annual sales, the company operates five production centers and 47 distribution centers, and produces roughly 150 million cases of soft drinks each year.
Despite sales success, the organization was not able to optimize the performance of its employees. Due to a lack of performance-based elements in their sales compensation plan, they were missing opportunities to increase sales by incentivizing employees. As a starting point, they wanted to determine the sales impact of incentivizing the delivery merchandisers, the individuals responsible for driving the trucks, stocking the store shelves, and selling.
They were interested in making a change from a salary plus year-end bonus approach to a pay-for-performance structure. However, lacking expertise in incentive compensation, the organization engaged Optymyze to guide them through the process.
A team of Optymyze’s sales performance experts consulted with the executive team on the advantages, opportunities, and challenges involved in adopting variable pay. Optymyze recommended a proofof-concept (POC) pilot to test variable compensation and evaluate the results against the existing sales compensation plan. The pilot would focus on the delivery merchandisers.
Optymyze worked with the client to design an appropriate incentive compensation plan, identify and automate the related businesses processes, and define the metrics needed for effectively comparing the two approaches.
The pilot results were positive, making a compelling business case for a large-scale rollout. Management reviewed the business case, approved the initiative, and established a budget for expanding the program. Rollouts are ongoing and Optymyze continues to deliver the expertise to guide and support the program. Participants range from delivery merchandisers to business development staff, and from manufacturing supervisors to merchandising managers. The organization is now experiencing:
- insight into sales performance which aids data-driven decision making.
- goal achievement for gross margin, unit volume, shrink, profit per location, and a variety of objectives.
- improved efficiency through automation of payment adjustments, goal adjustments, and payment approvals.
- enterprise efficiency through the integration of incentive compensation processes with existing support systems.
With Optymyze’s expertise and guidance, the bottling giant was able to successfully navigate the adoption of variable compensation, which has proven to be a highly effective way for them to drive sales performance across the organization.