Having many registered outlets means nothing if most of them don’t place orders regularly. In reality, a large number of outlets in the system are inactive and haven’t placed any orders for a long time.
By identifying the causes of inactivity and applying the right strategies and tools, these outlets can be re-engaged and turned into valuable contributors to increase revenue.
Factors of Inactive Outlets
In a competitive market, keeping outlets active and engaged is critical for sustained growth. Many outlets still face challenges that impact their performance and lead to inactivity.
Several factors cause outlets to become inactive or underperform, including:
- Outlets not covered
Coverage gap: outlets in the market area but not visited
Low priority: rarely included in sales coverage
Missing in the system: outlets exist but are not recorded - Weak retail engagement
Weak interaction: minimal contact weakens relationships
Irrelevant promotion: trade programs don’t match outlet needs
Poor support: unresolved issues reduce trust - Competitive pressure
Uncompetitive pricing: margins are unattractive to outlets
Strong competitor promotion: competitors offer better promo and incentive
Brand substitution: consumers prefer competitor products - Fulfillment issues
Late delivery: orders arrive outside SLA
Order mismatch: delivered items differ from orders
Stockouts: frequent unavailability at the distributor - Limited wallet share
Limited cash flow: outlets lack the capital to purchase more products
Focus on fast movers: prefer items with quick turnover
Risk avoidance: avoid slow-moving or uncertain SKUs
Activation of Outlets Matters
Reactivating inactive outlets is a strategic move to unlock untapped potential within the existing distribution area. These outlets are often overlooked due to lack of coverage, low sales priority, or missing data in the system. Compared to acquiring new outlets, reactivation is faster and more cost-efficient, as these stores already have some exposure to the products and processes.
In addition to increasing sales volume, activating these outlets helps improve product availability, expand retail reach, and minimize the risk of competitor takeover. With consistent support and relevant trade programs, outlets can remain to stay engaged and maintain loyalty.
BOSNET Solutions for Activating Outlets
BOSNET supports outlet activation through an integrated suite of digital tools designed to enhance distribution efficiency from sales to delivery, including:
- DMS (Distribution Management System)
Simplifies managing outlet data, orders, and sales performance in real time.
- Mobile Salesman
Provides sales reps quick access to record transactions and manage field visits directly.
- Mobile Prospector
Helps sales teams discover and activate new outlets with accurate market data.
- Mobile Supervisor
Enables direct supervision of sales activities and outlet performance to ensure targets are met.
- Smart Route
Optimizes sales visit routes for greater efficiency and time savings.
- WMS (Warehouse Management System)
Manages stock and delivery with high accuracy from warehouse to outlet.
- Mobile Delivery
Supports timely and accurate product delivery according to orders.
- Sales Forecast
Offers sales predictions to aid stock planning and marketing strategies.
- Stock Replenishment
Automates stock refills to ensure outlets consistently have products available.
With BOSNET solutions, inactive outlets can be reactivated through efficient and dependable processes that support field operations and decision making. Helping businesses increase revenue, reduce costs, and protect assets.
Read more: Digital Solutions for the FMCG Industry
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