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2023-06-19 12:44

A case about a distribution company that increased its revenue by 200 000 000 UZS by implementing the Smartup system

First of all, in order to understand the resources and efficiency of the ‘Happy Business’ distribution business, the inputs are listed:

➤ 1,000 outlets

➤ 1,000,000 UZS - the average check of the order in each of the outlets

➤ 65% Strike Rate

By simple calculations, we find out that the monthly revenue of the distributor is 650,000,000 UZS.

Strike Rate is a useful metric that can be included to calculate sales key performance indicators (KPI) for sales representatives

Driven by the desire to develop and improve the efficiency of his business, the head of the distribution company ‘Happy Business’ decided to automate business processes and implement Smartup.

The cost of Smartup maintenance for a particular distributor was 1,600,000 UZS per month.

With the support of Smartup specialists, the distributor successfully launched the visits module and increased the efficiency of sales representatives. The visits module allows to:

- Build the most effective route of visits for each sales agent

- Prescribe the steps of the route, which guarantees the full implementation of the visit plan

- Regulate the volume of goods ordered by or delivered to retail outlets

- Track and eliminate cases of out-of-stock (lack of goods on the shelves) for each outlet

- Minimize costs, due to identification and elimination of expired products

- Monitor the correct layout of products on the shelves

In a short period of time, owing to the implementation of Smartup, positive results were recorded. Strike Rate increased to 85%, which, in turn, led to a raise in revenue up to 850,000,000 UZS.

ROI (Return on Investment) is a calculation of the monetary value of an investment versus its cost

To determine the effectiveness of Smartup implementation in the business processes of ‘Happy Business’, we calculate the return on investment using the formula:

(Revenue - Expenses) / Expenses * 100 = (200,000,000 - 1,600,000) / 1,600,000 * 100

At the output, we get the return on investment equal to - 12 400%

To summarize, owing to the implementation of Smartup, the distribution company ‘Happy Business’ increased the effectiveness of its business processes and managed to achieve impressive results:

+ 20% - Strike Rate

+ 200,000,000 UZS - revenue

+ 198,000,000 UZS - net revenue

At Smartup, we are focused entirely on a positive result, moreover, we are interested in the performance of your business! To automate your business processes, sign up for a Smartup product presentation