The challenge
Business entities today face multiple challenges in terms of profitability and safeguarding the financial investments in their distribution channels.
Indirect distribution is highly tied to sales promotion and marketing programmes, which are often abused by participating distributors to the detriment of the business entities, e.g. through unauthorised claims or misuse of the financial contributions.
The potential consequences are declining profitability of incentive schemes due to margin erosion, decline in sales due to the withdrawal of loyal distribution partners, distortion of competition and damage to reputation. This makes it all the more important to ensure transparency, efficiency and compliance.
Your advantage
KPMG supports you in designing and implementing efficient measures to identify the risks, prevent misuse and minimise any losses.
Methodologically, our approach follows a three-stage phase model, including the identification of a maturity level and the current state, the design and implementation of a channel compliance monitoring programme, and continuous risk monitoring and implementation of effective compliance measures, e.g. channel audits of distribution partners.
Our interdisciplinary team has years of experience in building effective and efficient channel compliance monitoring programmes as well as deep expertise in the distribution landscape. With 450 specialists worldwide, KPMG is one of the leading providers of governance, risk & compliance services in the indirect distribution channel.
For further information or questions, please do not hesitate to contact us.
Get in touch.
