Click the image for details Recently, I chatted with a distributor friend with a transaction scale of over 30 million. When asked what the most headache-inducing issue in business is now, I expected it to be declining sales or e-commerce impact, but it wasn't. What troubled him most was his sales staff: unable to recruit, manage, or retain them. The entire market and performance were affected by personnel issues. This is a common problem for many distributors at a certain stage of development. When the workforce reaches a certain size, the original organizational management and performance evaluation systems begin to lose control. The core factor here is not the people themselves, but the need to adjust the organizational management mechanism. Sales staff working for distributors have limited upward mobility, incomplete benefits, low income, and high turnover. Without a good mechanism, the distributor's personal capability becomes the company's ceiling. My advice to distributors is to implement contracting and the 'Small Boss' project, turning employees into company partners, shifting from working for someone to entrepreneurship, and realizing personal value and ideals by stimulating an entrepreneurial mindset. Of course, there are many issues, such as employees not having enough money to buy shares, contractors leaving after two years after ruining the market, leaving the distributor to clean up the mess, contractors ignoring manufacturer requirements, and new product promotion becoming difficult. These problems do exist. The key is whether distributors can use management mechanisms to activate individual employees while avoiding these issues. Today, I'll discuss how distributors can successfully implement the 'Small Boss' contracting project. Different products, development stages, and employee positions require different forms of contracting. Generally, there are three forms: area contracting, brand contracting, and employee shareholding. Area Contracting: A single salesperson contracts their market area with a guaranteed minimum sales volume. Brand Contracting: A sales supervisor leads a small team to handle the full market operation of one or multiple brands. Employee Shareholding: Business managers buy shares in the company and enjoy year-end profit dividends. From a profit distribution perspective, there are two types: small contracting and large contracting. Small Contracting: The company provides a base salary and covers all basic expenses. The salesperson earns profits and shares them with the company. Large Contracting: No salary, and the company does not cover any expenses. The salesperson earns profits from their own transaction volume. Preparation Before Contracting - Part 1 Before implementing contracting, distributors must be fully prepared. They need to quantify and track all sales personnel market operation standards and execution criteria, with an evaluation system in place.
- Quantifiable All salesperson operation standards should be systematically quantified. Only through quantification can the quality of work be effectively evaluated. Generally, quantification includes two parts: quantification of work plans and quantification of work standards. Quantification of Work Plans: This involves detailed area division, systematically planning population, towns, and routes, quantifying daily terminal visit routes and the number of stores visited. This gives employees a planned, purposeful route from Monday to Sunday, knowing which outlets to visit before leaving each day. Quantification of Work Standards: Break down all tasks that salespeople perform at terminals to drive consumer purchases and quantify each action. For example, how many stores must be visited today, what poster standards each store must have, how many of each flavor on the shelf, the thickness of the display, price tag and carton cutting standards, display standards, and standards for cold chain and merchandising. Through quantified work details, employees don't rely on improvisation but follow a planned, purposeful, measurable, and evaluable system. After quantification, you can clearly know the day's route visits and work quality in stores. Based on work quality, give corresponding rewards. Reward the salesperson's work quality the next day to increase enthusiasm for terminal execution and lay the foundation for standard management.
- Trackable With quantified work evaluation, there must be a corresponding tracking and assessment mechanism. Without timely follow-up and inspection, salespeople are unlikely to maintain long-term positive work. Distributors planning to contract must have a complete tracking management system. For example, what time did the salesperson visit the first store, how long did they stay, what score did they get in the store, the actual terminal work situation, the number of visits that day, whether the route was optimal, the number of visits to that store that month, and whether there are signs of fraud. There must be a trackable system tool to support this. New Distribution suggests distributors use sales management software with strong process monitoring, including features like photo capture, GPS positioning, electronic fences, and timelines for effective tracking. Additionally, a visual management board should be on the wall: tools like one chart and two tables for performance tracking should be available and filled in accurately and on time.
- Evaluation Implementation System Common evaluation tools for distributors include performance wages, rules and regulations, reward and punishment systems, and personalized rewards. However, the most critical implementation tool is the morning meeting. Through a standardized morning meeting process, systematically tracking and evaluating work is the most effective way to implement the evaluation system. I've visited many distributor warehouses and found that many with transactions over 10 million still lack a standard meeting room, let alone necessary tools like projectors, printers, broadband, and office chairs. I suggest that distributors lacking these facilities must have a well-equipped meeting room with a good environment for standardized management. Suggested Morning Meeting Process:
1. Morning Meeting: Usually scheduled between 7:00-8:00. Before starting, it's common to have everyone shout slogans to boost morale.
2. Data Analysis: Analyze yesterday's sales data to track visit quality and performance achievement:
Outlets: How many stores were supposed to be visited? How many were actually visited? How many were missed? Why?
Scores: What was the average score per store? Did they take action? How many stack displays or carton cuts were done?
Sales: Sales ranking. Who is first? Who is last? Find out why.
Income: Income ranking. Who earns the most? Who earns the least? How to improve income?
3. Work Review: Enter the backend system to review and analyze key cases or common problems.
4. Emphasize Key Points: Highlight key points for the day, but not too many. End the meeting after that. Preparation Before Contracting - Part 2 Before contracting, distributors should systematically organize the market's outlets and routes. The market organization process can be divided into four stages: preparation, introduction, expansion, and consolidation. Stage 1: Preparation Assessment stage: Conduct a systematic analysis of the market, individual employees, teams, current product sales, and competitive products. Also, improve supporting facilities and office materials. Stage 2: Introduction Intervention stage: Based on the initial assessment, develop personalized solutions. Try to communicate with employees to gain their understanding and support. Through morning meeting training, incentives, and standardized processes, make the sales team recognize the professionalism, authority, and trustworthiness of the intervention. Morning Meeting Rituals: Meeting time, slogans, rituals, and process.
Rules and Regulations: Tardiness, phone usage, office management requirements.
Terminal System Usage: Photo distance, store entry, photo upload, new store development.
Morning Meeting and Evening Loading: Warehouse management, loading standards, return/loading times, and loading process. Also, during this stage, have the sales team gradually survey the market to prepare for the next stage of channel expansion. Stage 3: Expansion Use a method of area, line, and point to gradually develop outlets in the region. During this stage, the distributor should introduce store development promotional policies and assessment incentives, introduce internal competition, and eliminate unsuitable personnel. A: New Outlet Development Process
Set outlet development goals: Break down total goals into daily/person targets.
Develop outlet development package policies: Single store, small amount, small quantity, multiple display rewards.
Set reward and punishment policies (both rewards and penalties): Ranking, progress, bottom.
Solidify daily reward and punishment process: Verbal praise, cash distribution at morning meeting, applause.
Provide auxiliary training: Terminal ice-breaking techniques. B: Route Division Process: Three stages: area, line, point.
Area: Based on actual market conditions, have the distributor divide vehicle responsibilities by area.
Line: After outlets are developed to a certain stage, re-divide visit routes based on outlet distribution.
Point: Based on actual terminal sales and outlet classification, divide the most economical visit routes. Stage 4: Consolidation When outlet development reaches a certain number, gradually consolidate and divide routes. Have distributor personnel cooperate to visit terminal outlets according to the divided routes. During this stage, sales may plateau. Timely expand in-store SKU numbers, enrich category structure, and introduce high-margin products. Strictly follow up on internal data, strictly enforce standards, and through highly solidified and rigid work content, create muscle memory in the team. After a period of standardized execution, market sales may surge, and employee enthusiasm will greatly increase. After further consolidating previous market achievements, it's not too late to consider contracting. Ten Requirements Before Contracting:
Goals must be broken down to individuals.
Routes must be clear, outlets must be confirmed, and outlet lists printed on the wall.
Office must be standardized: battle maps, route area divisions, morning meeting projector.
Professional managers must have professional management skills.
Profit sharing must be clear; the core value is profit distribution.
There must be per-store sales targets (clarify per-store sales).
Vehicles must be fully equipped.
Loading must be done in the evening.
There must be a base salary.
Price levels must be high and stable. Key Points of Contracting The success of contracting depends entirely on how well the distributor prepares. Distributors must understand that contracting is not about delegating power or just sharing money. Contracting is about building a platform for employees to start businesses. Behind contracting, there must be a strong operational system to support it. New Distribution simplifies this system into: five management mechanisms, four driving guarantees, three backend systems, two things the boss must do, and one platform. Five Management Mechanisms
Profit Sharing Mechanism: Profit sharing, dividends, equity ratio, etc.
Assessment Mechanism: Business target achievement, categories, new products, reward and punishment design, etc.
Inspection Mechanism: Independent market inspection, acceptance, follow-up, etc.
Entry Mechanism: Employee entry thresholds, years of service, performance, share purchase requirements, etc.
Exit Mechanism: Market handover after resignation, deposit refund, dividend details, etc. Four Driving Guarantees Guarantee Basic Income: At the initial stage of contracting, ensure employees' basic income. Otherwise, if workload increases and income drops, the project will be hard to start.
Guarantee Inspection and Tracking: Set up an independent inspection and evaluation system to follow up through market checks, avoiding loss of market control due to contracting.
Guarantee Timely and Accurate Financial Accounting: Appropriately increase financial staff to ensure timely accounting, allowing contracted employees to track performance and profit indicators in real time.
Guarantee Full Support from Logistics: Warehousing, internal services, and other support departments must fully prioritize service for contracted employees. Three Backend Systems Information Monitoring System: Use sales management software for transaction, work, and performance analysis and management, achieving visualization, quantification, and evaluation.
Financial Accounting System: Based on the rules set during contracting, establish accounting processes, content, and details to ensure accuracy, timeliness, and fairness.
Business Management System: Morning meeting management, work process management, performance evaluation management, and market inspection management must all be followed up. Two Things the Boss Must Do Financial Transparency: Strive for same-day accounting and disclosure, standardized, open, and transparent. The more transparent the financial system, the more secure employees feel.
More Work, More Pay: Make employees understand that early birds catch the worm. The company is a paradise for entrepreneurs. As long as you give, you gain; as long as you work hard, you get rewarded. One Platform Employee Entrepreneurship Platform: The essence of contracting is to let employees start businesses on the company's platform. The distributor transforms from boss to investor, and employees from workers to partners, allowing the company to develop steadily under a healthy system. Only by implementing area contracting can distributors truly enhance organizational drive, make employees work for themselves, and genuinely care about how to help the boss make more money. Only then can distributors be confident in being hands-off. In fact, only after contracting can distributors have a systematic guarantee for future internet transformation, unified warehousing and distribution, and B2B electronic transactions, avoiding situations where people and vehicles cannot be separated, and salespeople can't sell without driving. New Distribution's '7th B-end E-commerce Study Tour' is now recruiting! Activity Schedule: Suzhou·Shanghai·Hangzhou. 19th: Check in at designated hotel in Suzhou; 20th: Visit Suzhou Medline; 21st: Visit Shanghai Hd; 22nd: Visit Hangzhou Wangcang; 23rd: Return or free time. Platform Introductions: Medline Youshang Software, a well-known domestic information system provider. In 2015, it launched the 'Medline' brand. Based on Youshang Software products, with AI technology as the core and efficient operations as a breakthrough, Medline helps distributors build new B2B business models. It currently provides software technical services to distributors in over 50 cities nationwide. Hd Company Shanghai Hd Information Engineering Co., Ltd. (hereinafter referred to as Hd Company) is a domestic first-class management consulting and software R&D company for commercial circulation, e-commerce, and modern logistics solutions. For over 20 years, it has been committed to creating modern commercial management models for clients. Hd's systematic products and solutions with independent intellectual property rights are highly competitive in chain retail, commercial real estate, and warehousing logistics. It currently supports over 500 well-known large and medium-sized commercial enterprises and group users across 30 provinces and cities. It is the largest retail software provider in China. Wangcang Zhejiang Wangcang Technology Co., Ltd. was established in June 2011. It is the earliest and currently the only large-scale independent fourth-party intelligent warehousing and distribution service provider in China. Wangcang has been committed to innovative, practical, and daily operational solutions for refined and collaborative warehousing and distribution for e-commerce enterprises. Today, Wangcang has the capability to provide solutions from B2C e-commerce warehousing and distribution to full supply chain integration (B2B+B2C). Relying on its self-developed adaptive warehousing and distribution integrated management system, combined with years of warehouse construction and management experience, and self-developed equipment, Wangcang has formed comprehensive competitive advantages. Wangcang's system can seamlessly connect with all sales platforms, enterprise ERPs, logistics and express resources, and in-warehouse operational resources (such as equipment, labor, storage space). Through our services, single-warehouse efficiency can be greatly improved, and resources can be interactively allocated and flowed between warehouses. Through big data, we provide value-added services such as supply chain optimization and supply chain finance for cargo owners. Additionally, through open systems and management advantages, we provide franchise services for warehouse owners. Organization Format ************1. Company visit
. Actual market case visit 3. On-site explanation 4. One-on-one communication************ Participating distributors only need to pay a 200 yuan registration fee. Other expenses are self-covered. Long press this QR code or click 'Read Original' to register. Long press QR code to add WeChat for registration. Previous Study Tour Group Photos: 6th B-end E-commerce Study Tour group photo, from top to bottom: Zhongke Shangruan, Shuhai Supply Chain, Yunmei Shares, Yishang Logistics. 5th B-end E-commerce Study Tour group photo, from top to bottom: Huiwangxing, Beiquan, Tongying Tianxia, Quanshihui, Zhongke Shangruan. 4th B-end E-commerce Study Tour group photo, from top to bottom: Alibaba Retail Link, Qianmi Network. Click 'Read Original' to register. -END-