LCBM MOBILE CHANNEL PREPARED BY: KARACHI MOBILE TEAM

EXISTING MODEL
For mobile channel, we have the commission structure for RSOs and Delivery Men is as follows:

0.45% for RSO 0.35% for Delivery Men

With this structure RSO get the 0.45 commission on sales of every channel whether it is trade, mobile or OOH. Currently, mobile supervisor gets the salary as per following structure.
Sales Supervisors Mobile Salary Structure
Heads Basic Salary Conveyance Allowance (60 Liters as per actual rate) (Current @ Rs.104 Per Ltr) Daily (26 Days Maximum) @ 250 Fixed KPIs Target Achievment (If achieve 95% = Rs. 2500); (If achieve 90% = Rs. 1500); Trike throughput If >= 60 litres in season and >=30 liters in OFF season=3000 Operational Gaps: IF <10%: 2000, IF <5% : 3000 (Operational Gaps should vary for Season & Off Season) Variable Total PACKAGE 12,000 6,240 6,500 24,740 1,500 2,000 3,500 28,240 2,500 3,000 3,000 8,500 33,240

EXISTING MODEL ANALYSIS

With this model, in 2012 we have paid the following amount to the RSOs in KARACHI CITY.
2012 SALE IN VALUE 2012 TOTAL RSO COMMISSION 2012 AVERAGE PER MONTH SALES 2012 AVERAGE PER MONTH RSO COMMISSION 2012 KARACHI CITY A1 165,362,071 48,036,807 A2 19,142,364 86,141 1,595,197 7,178 RT 44,070,203 198,316 3,672,517 16,526 SA1 14,221,618 63,997 1,185,135 5,333 SA2 39,891,080 179,510 3,324,257 14,959

744,129
13,780,173

216,166 4,003,067 18,014

62,011

PROPOSED MODEL
In proposed model, there should be commission only for the delivery men for MOBILE CHANNEL SALES. There should be no sales commission for RSOs in MOBILE CHANNEL SALES. RSOs should only be focused towards the sales of trade and OOH channel and it will also increase the efficiency of them. We have proposed a new salary structure for mobile channel supervisor to increase the sales.
Proposed Sales Supervisors Mobile Salary Structure
Heads Basic Salary Conveyance Allowance (60 Liters as per actual rate) (Current @ Rs.104 Per Ltr) Daily (26 Days Maximum) @ 250 Fixed KPIs Target Achievment (If achieve 100% = Rs. 2500); (If achieve 95% = Rs. 1500); Trike Monthly throughput: Season Mar to Oct (IF >=60 Liters: 1000), Off Season Nov to Feb (IF >=30 Liters: 1000) Operational Gaps: Season Mar to Oct (IF <5%: 2000), Off Season Nov to Feb (IF <25%: 2000) Assets Scanning: (IF Scanning Ach% >=95%, 1500) P1 Target Incentive: (If achieve 90% = Rs. 1500) Variable Total PROPOSED PACKAGE 12,000 6,240 6,500 24,740 1,500 2,500 1,000 2,000 1,500 1,500 8,500 33,240

1,500 26,240

PROPOSED ANALYSIS FOR LCBM

With this model, we will save the following amount also.
2012 165,467,861 2013 Plan 167,122,540 Cost Save 01% Growth Over LY SALE IN VALUE 2012 TOTAL RSO COMMISSION 2012 (0.45%)

744,605

Rs. 752052 Save

This will also help us in cost saving of Rs. 752,051 for LCBM Model
With the change in proposed structure for mobile supervisor salary, the new KPIs will help us in monitoring, Assets Scanning Target Achievement Focus on HGMs SKUs

CONCLUSION
As company is working on LCBM MODEL and as a mobile channel we find this solution to reduce the cost of company. Our proposed structure is helpful for the efficiency of mobile channel because mobile supervisor has to visit SPDs on daily basis so if he will take the orders and do the scanning then there will be no need of RSO to visit SPDs.

It will increase the interest level of mobile supervisor and we can improve the mobile channel efficiency through this.