Mapping the supply channels

01Situation

A large foreign company suspended its operations in Russia and stopped official supply. It kept a core team in place and did not rule out returning to the Russian market.

02Problem

Having cut its presence to a minimum and no longer supplying the market itself, the company nevertheless had an agreement with foreign distributors prohibiting direct supply to Russia, so as to retain at least minimal control over distribution of its genuine goods.

Against that background we were asked — in addition to monitoring online and offline offers with analytics on the SKUs offered and price levels — to carry out information analysis focused on identifying the first link of import into Russia, maintaining confidentiality under terms agreed with the client.

03Solution

We carried out extensive work requesting supply document chains and mapping the links of the distribution chains; our partners in the dispatching countries also assisted.

Close cooperation with the marketplaces played a significant part in the result. On several of them, a seller’s failure to produce supply-chain documentation is grounds for delisting. Obtaining those documents was our original interest, while the blocking of unauthorised sellers was also a welcome outcome from the client’s point of view.

04Outcome

We identified four key channels of unauthorised import into Russia, together accounting for no less than 40% of all imports. The information gathered on the original consignors was handed to the client, allowing head office to cut off supply.

Combined with the detailed market monitoring, this let the client preserve a foothold for a potential return to the market.