China Price Index: How China’s Agrochemical Industry Can Tame the ‘Bullwhip Effect’
I worked for Bayer CropScience China in 2012. A decade ago, Bayer CropScience China was faced with huge channel inventory and sales pressure. This was mainly due to the loss of a key product in Bayer’s portfolio, fipronil (Regent). Beginning on 1 October 2009, the sale and use of fipronil-containing pesticide formulations was banned in China (with the exception of some sanitation and seed coatings for corn or other crop in dry land). The registration and/or production permit of approved fipronil-containing pesticide formulations for other uses was withdrawn.
The sudden absence of the core product forced Bayer’s sales and marketing team to pick up the long tail of branded products again and to keep pumping large amounts of branded products into the channel to ensure that sales goals were met. The dual adversity of high inventory and key performance indicators (KPI) sales expectations also set the stage for the subsequent organizational transformation in Bayer CropScience China.
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The sudden absence of the core product forced Bayer’s sales and marketing team to pick up the long tail of branded products again and to keep pumping large amounts of branded products into the channel to ensure that sales goals were met. The dual adversity of high inventory and key performance indicators (KPI) sales expectations also set the stage for the subsequent organizational transformation in Bayer CropScience China.
Click Here to read more.