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More big companies outsourcing sales activities

7 November 2016

More big companies outsourcing sales
activities

More big food and grocery companies are seeking
specialist help from sales and merchandising agencies as
cost and margin pressures increase, says Crossmark NZ
Managing Director Grant Leach.

Speaking in an FGC Leaders
Series video interview, he says that typically around 10 per
cent of New Zealand companies have outsourced their sales
and merchandising activities but that is changing.

He says
manufacturers consider outsourcing sales and merchandising
for three reasons: New Zealand’s geography makes a sales
team a very expensive model to service; a manufacturer can
come under increased pressure from cost of goods and can’t
necessarily pass those on to the retailer; a manufacturer
may also be under increased margin pressure from the
retailer themselves.

“In the past 12 or 18 months [we]
have noticed a change in the type and size of manufacturers
that are seriously considering the possibility of using a
sales and merchandising agency (SMA). Previously it was
probably a manufacturer with a turnover of up to around the
$25 million mark – now we’re seeing that that has
changed, with manufacturers’ turnover up to about the $60
million mark.

“And I would predict that in the next
12-18 months it’ll be substantially higher than that
threshold point.”

He says specialist sales and
merchandise services “is where the future is going from a
sales and merchandising agency perspective.”

Watch
the interview with Grant Leach
here.

ends

© Scoop Media

Article source: http://www.scoop.co.nz/stories/BU1611/S00223/more-big-companies-outsourcing-sales-activities.htm

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