Use case: Asset mapping
One of the largest non-alcoholic ready-to-drink beverage player in the Asia Pacific region prevented an impact of hundreds of thousand dollars on their financial results by leveraging the power of Snooper.
The RTD beverages company engaged Snooper to map their branded fridges in the convenience channel, where they had limited visibility.
Snooper sent shoppers to convenience stores everywhere in Australia to ‘hunt’ branded fridges, report the asset number, its in-store location and any equipment maintenance issues.
It’s a common practice in the fast-moving consumer goods industry (FMCG) to offer fridges to retailers and ask for the exclusivity of use (or a higher share of shelf) in return. This is a strategy leveraged to secure space in the stores and increase brand awareness, given the fridges are usually merchandised and help drive impulse purchase.
The challenge with this practice is keeping track of all the assets that are physically in the retailers’ stores. Managing fixed assets in the system is one thing, knowing exactly what’s happening in the field is completely different.
If brands don’t physically audit their fixed assets, they are likely to have to dispose of the ‘ghost asset’ and asset disposal results in a direct (negative) effect on the company’s bottom line. However, auditing the field can be expensive and time consuming if done with the internal teams.
How Snooper helped
Snooper visited convenience stores across the country and identified 400+ branded fridges, which were photographed and reported back to the beverage bottler company in a record time.
Issues with fridge availability, visibility or equipment maintenance were also flagged to the field team, so they could get in contact with their retail partners to identify the remainder of the fridges not visible to shoppers or that needed fixing (e.g. fridge at the back of the stores, out of order).
Thanks to the Snooper data, the client was able to document the fridges and avoid writing off more than 400 assets from its balance sheet.
With a fridge valued at approximately $2,500 before amortisation, the brand was glad to prevent a huge impact on their financial results, and collected the data at an unprecedent speed which wouldn’t be possible if they used their internal teams.
For most businesses, fixed assets represent a significant capital investment and it is extremely critical that the accounting be applied correctly.
By leveraging the power of crowdsourcing, asset mapping can be done in a much quicker and cost-effective way.
Conduct an Asset Mapping audit for your category
Whether you own beverage fridges, ice cream freezers, make-up furnitures your assets carry a lot of value and need to be spotted every 2 years to appear on your Balance Sheet and get the money back of the depreciation on your P&L. This is millions of dollars you could add back onto your bottom line.