Click to read the original article for details. Introduction: Molihutong has been helping Jinmailang digitize its sales channel management since 2008, with over 10 years of service. This article is compiled from a speech by Cao Jun, CEO of Molihutong, at a certain meeting, aiming to provide insights from a system service provider's perspective on how distributors should correctly understand and use sales management systems. Cao Jun's profile: With a 4A background and 20 years of practical marketing experience, he has been committed to continuously improving corporate performance. Since 2008, he has creatively integrated marketing expertise with sales channel management informatization. Companies he has served include Uni-President, China Mobile, Motorola, AMD, Mengniu, Zhuyeqing, Pizza Hut, Danone, the Disabled Persons' Federation Foundation, and China Merchants Group. He was responsible for the annual national marketing planning of 13 brands under Uni-President Beverages, completed the 2008 Beijing Olympic bid project for China Mobile, and helped Jinmailang achieve digitized sales channel management with sustained counter-trend growth. As the demographic dividend disappears and labor costs rise, distributors' businesses are becoming increasingly difficult. Even if "sales volume" grows, profits are not what they used to be. Coupled with the dual pressure from internet giants like Alibaba and JD.com in online e-commerce and offline "new retail," distributors can no longer sit still. Facing threats from all sides, distributors are forced to think about how to stabilize internal operations and fend off external competition, enhance their combat capabilities, and increase their market share. In a distributor's business playbook, two key sources determine business performance: one is the salesperson, and the other is the store. When the scale is small, with three to five employees and a hundred or so outlets, the boss can still handle things personally. But once the scale grows, with more employees and more outlets, the boss cannot keep up. Additionally, as the boss spends less time in the market, they become unclear about how the market is actually doing, how many outlets there are, and how well products are moving. It is based on this reality that many distributors hope to use a system tool to keep a tight rein on both people and outlets. Can distributors really keep an eye on their salespeople? 01 Salespeople cannot be watched or managed Obviously, distributors who expect to "watch over" their staff by implementing a system may end up disappointed. Why? Let's first look at what internal salespeople think: Distributors view the system as a monitoring tool, using functions like GPS and photo-taking to keep an eye on people. But such operations make employees feel like they are in prison, being watched all day. Employees either claim the system is broken or their phone battery is dead, spending their time figuring out how to fake data. Management becomes a game of catching thieves, with the boss as the sheriff. If you go down to the field and ask salespeople whether they want the system, more than 90% will definitely shake their heads. If employees don't want to use it, can you really manage them? As the saying goes, "The higher-ups have policies, and the lower levels have countermeasures." Salespeople will spend their time figuring out how to "get by" rather than how to turn the system into a weapon to boost their sales. Now look at the external environment: Once upon a time, food delivery riders have become a part of our modern life. According to data, there are currently 7 million food delivery riders nationwide, earning 7,000 to 8,000 yuan a month. As blue-collar workers, they can already rival white-collar workers just entering the workforce. Most importantly, e-commerce giants are willing to sustain this "last-mile living circle" business even at a loss. △ Meituan's 2018 report card: Core business profitable but full-year loss of 11.55 billion yuan Compared to traditional FMCG salespeople, who have to arrive at the office by 7 a.m., attend a morning meeting at 7:30, then load goods and visit stores one by one, selling a few pieces or boxes each time, issuing invoices, unloading, and tidying shelves, they don't return until 6-7 p.m., and then have to do inventory and settle accounts. Riders not only earn higher incomes but also have easier jobs, flexible working hours, and shorter workdays. More and more traditional FMCG staff are choosing to become riders. So, when distributors try to use a system to keep an eye on "lazy" salespeople, they may end up watching nothing, and it might even become the last straw, causing salespeople to quit on the spot! 02 From monitoring to motivation What should be done? Go back to the basics: The original intention of implementing a system is to improve the business, not to actually watch over employees. Therefore, distributors should think more about how to increase employee enthusiasm and work motivation to gain more business. Returning to this logic, the system is just a tool; distributors should focus more on how to boost employee morale. First, employees don't want to be "watched," they want to be "noticed." In larger trading companies, there may be dozens or even hundreds of frontline staff. Distributors cannot possibly give equal attention to everyone in daily operations. Employees might not see the boss more than a few times a month. When they see the boss passing by, they might put in a bit more effort. After implementing the system, the distributor boss should check it at least two or three times a week, if not daily. They should comment on and publicly praise employees who do well. When the individuals see this, they will certainly have more passion and motivation in their future work. This also enhances the team's sense of belonging. Second, put frontline employees in a "fair" performance evaluation. A good performance can cover up a hundred flaws! Some distributors only focus on "sales volume," judging employees solely by daily and monthly sales performance. Frankly, looking at performance indicators is not wrong in itself, but only looking at sales indicators can lead to problems. The level of sales in a region depends on a combination of factors. Besides the employee's personal efforts, there are many external factors, and even luck. To do well in FMCG distribution, outlets, displays, and visits are also key. So when evaluating employees, distributors should not only look at sales figures but also at the basic actions in the visit process. Let's understand "fairness" from another dimension, such as cross-region selling (diversion). The root of diversion must come from upstream brand owners. Brand owners often give distributors lower prices and bigger discounts based on purchase volume and contribution. So in China's distributor system, "the more you divert, the more say you have, and the better the policies," leading to a vicious cycle. Where is the problem? Because the brand's sales director is burdened with sales KPIs, also only focusing on "sales volume," which is unfair to distributors who seriously do visits and displays. Similarly, for distributors to create a fair environment for employees, they cannot only look at sales volume. While looking at result indicators, they should also pay attention to process indicators. Third, the correct way to "motivate" frontline employees. Many distributors implement systems without considering incentive mechanisms or execution standards (location, photos, visits). They expect results the day after implementation. Employees are fined for not reporting in the morning or evening. Many "well-known" sales management software in the market have common system loopholes and lack management logic. Employees deal with the boss by tampering with locations, times, and photos. Distributors spend money on systems but end up with a pile of fake data. Can distributors change their approach? If employees are rewarded for using the system to report, they will definitely say the system is good. Once employees take the first step to accept the system, the story of improving business and efficiency begins. When the mechanism set under the system is well-defined, execution will naturally be unleashed. So, the source of motivation is definitely not taken from the existing stock but created from the increment. Implementing a system ensures that employees can execute the product sales strategy standards truly and consistently. After execution, market sales increase, and the increment emerges. Motivation becomes a natural thing. Additionally, many distributors like to impose fines, but in fact, fines don't mean much. If there are more fines than rewards, the problem lies with the incentive policy makers; if there are more rewards than fines, there is no need for fines. Because in China's relationship-based society, if 8 out of 10 people are rewarded, the other two are effectively punished. These two employees will either reform or leave. Therefore, after implementing the system, use the logic of rewards rather than punishment. 03 Implementing a system is to improve performance In summary, even if distributors do not implement a system, they should manage employees in this way. The system is not a monitoring tool but an empowerment tool. Through the tool, it improves attention, fairness, and motivation for employees, making employee management smoother and more efficient. Simply put, distributors should combine correct management thinking with the system. Management thinking is the core, and the system is auxiliary. The criterion for judging a system is whether it can implement the thinking and ensure data authenticity. In fact, the ones who suffer the most from implementing a system should be the distributors. Because with the system, distributors or managers can no longer act on whims, cannot shift the blame for poor performance onto salespeople, and must think through and plan complete and clear sales tactics and incentive methods. Once, during a system launch mobilization for a company's distributors, I asked at the end, "Did you understand?" The distributor said, "Understood. It's not about implementing a system for employees, but buying a tightening spell for myself." That understanding is quite accurate. Only when distributors think this through clearly can they implement the system. If they still think they can freely control employees and remotely monitor them at all times, I advise them not to waste money and effort. Implementing a system actually forces distributors to think actively and sort out the development stage of their own trading company. Of course, thinking this far is not enough; they must also form a complete strategy and achievement plan. Then, through the system, they set corresponding incentive standards to ensure the strategy lands and goals are achieved. Employees only need to execute according to the system standards and earn more incentives. The system is really not a tool for assessment or watching over employees; it is an empowerment tool. It empowers distributors to do well in the market and improve business through digital systems; it empowers employees to gain incentives by executing standards in a fair environment where they can be noticed by the boss! -END-