Philip Morris Poland
achieves 25% savings by streamlining incentive payouts
COST SAVINGS FROM STREAMLINING PROCESSES
TIME SAVINGS FOR FIELD FORCE WHO NO LONGER DEAL WITH CARD COMPLAINTS
REDUCTION OF UNSPENT BENEFITS THROUGH DIGITAL ENGAGEMENT OF INDEPENDENT RETAILERS
Philip Morris was looking for a solution that would help them save costs while adding more controls for the small payouts process. Over 50% of all product is distributed through small retailers, and it is typical in the FMCG sector to use small and sometimes infrequent merchandising incentives to retail store owners and independent distributors to keep the product on the shelf at the right price and inventory levels, and to educate them on new products.
The internal effort to make such payments is high, as various spreadsheets and tracking tools sit in different departments, and as well, such payments were made using pre-paid cards - which are often lost and must be replaced, or worse, result in unspend awards which cannot be reclaimed.
Worse, any unspent funds on a pre-paid card will remain with the pre-paid card company, resulting in an inability to be certain that incentives are fully appreciated and used by the beneficiaries.
How to solve the need to have controls and monitoring of funds, to avoid having unused funds being kept by the pre-paid card company?
Payments using pre-paid cards and vouchers cost as much as 10% to 15% of the total payout amount when you include all the internal reconciliations and controls, the costs of replacement cards, the need for the field sales forces to be involved, and the cost of fraud.
HOW TO SAVE
FROM THE TOTAL COST OF MASS PAYOUTS?
Our solution is an end-to-end direct payout system with 3 elements:
HOW IT WORKS
Used pre-paid cards to make small incentive payments to shops for stocking the product at the right price
Used Billon’s system, integrated with Salesforce in the back office and streamlined the process end-to-end