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accounting
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The distribution of FMCG (Fast Moving Consumer Goods) products
has changed a lot in the last decade. New circumstances are
pushing companies to reorganize their internal processes and
costumers relations.
 And
route accounting has brought a completely new approach to the
customer. Yet many companies that use route accounting as their
main sales focus, realized that the key to enhancing their
competitive position lies in giving route accounting sales reps
all the information they need at the point of activity without
increasing costs. Converting essential data into useful
information allows to improve the quality of service and lower
the costs. The process of route accounting includes the
following four phases:
- collecting data at source, where the sales
process actually takes place
- converting source data into information, i.e.
preparing the data for further use
- active planning of priority tasks based on
accurate data
- synchronising of working procedures, that are
taking place simultaneously in different places.
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Faster adaptation to market demands
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The once stable, long-term relationship between supplier and
costumer has changed into an uncertain, daily fight for survival.
Retailers, surrounded with different offers, started ordering
from suppliers that were more flexible and also available, as
this kept their stock at the lowest possible level. Supplies
became smaller and smaller and the whole burden of stock was put
on suppliers. The most efficient solution has been to put the "stock
on wheels" - meaning stock that is easily made available to the
customer and better stock management by the supplier. The
supplier also became more flexible to current demands and was
given the opportunity to promote products on the field itself.
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Added value service
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Once retailers used to buy goods using their own vehicles. The
advantages of the contemporary approach of suppliers, where
goods are supplied to the door once or even more times a day,
brought new opportunities to improve business and vary the
products offered.
The quality of the goods from different suppliers is more and
more homogenous and in most cases relatively high. Consequently
the customers have turned to other factors when looking how to
build a more solid market position. Thus the added value comes
from the quality of service - a good sales representative, who
knows how to listen to the customer and has all the data at hand,
is always welcome.
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Reorganisation |
 Because
of the wide-ranging reorganisation, the roles of individual
staff members have changed. A lorry driver is no longer just a
goods supplier anymore, but is now a salesman, a vital link in
the whole chain. This doesn't just mean additional work, but
also additional knowledge. Contemporary systems for route
accounting are structured to provide simplicity and ease of use.
So the introduction and training period is relatively short and
enables an immediate profitable use of advanced technologies and
minimal staff adaptation.
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Better production planning |
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In circumstances where producers tend to optimise their economic
operation by keeping stock at the lowest level possible,
production planning has become really important. Especially from
the TQM (Total Quality Management) point of view, which along
with ISO9000 one of the most common tools companies use to adapt
to new market demands.
A Route Accounting information system enables fast
acquisition of information on the field, rapid uploading to the
production, which then becomes more flexible and adaptable to
the current market situation. Route Accounting is very popular
in the distribution of FMCG, especially food. Many companies
whose sales depend on uncontrollable conditions (like weather,
season,...) also use Route Accounting. Production planning in
this companies depends very much on the information gathered on
the field. A well-structured Route Accounting information system
enables a huge amount of data to be processed into relevant
information. This information is crucial for reliable planning,
especially in fields with large ups and downs of demand.
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Closer partnership with the customer |
 When
the costumer and supplier are equipped with the right
information technology, they can establish a direct data
transfer immediately, after each sale. The data is always
correct on both sides and the customer can avoid frustrating "acceptance
of goods" procedures and the endless adjustment of different
documents that can leave both sides dissatisfied and often led
to payment delay.
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Route Accounting information system |
There are many ways to improve the goals set about above.
Computerising the Route Accounting process is one of the best.
If the global trends are considered, the generation of data is
moving from computerised centres, through PC in the office, to
the hand-held terminals in the field, where actual and correct
data are needed. The main demands faced by the Route Accounting
information equipment are:
- compatibility,
- mobility,
- robustness,
- simple usage,
- document printing.
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