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Distribution Profitability Case Study

August 25, 2003
In his upcoming book, Reinventing Distributor Profitability, Bruce discusses six strategy maps for distribution companies to use. In this excerpt of a composite case study, he analyzes how a company revises its fill-rate strategies and customer segmentation to gain better results. A draft of the first chapter, including this case study is at www.merrifield.com.


ABC Distribution has for years pushed an expanding array of supplier lines and SKUs to diminishing return limits of its geography and active account base. A few years ago, ABC's management found that they were working harder to have less fun and no profits. Their statistical profile at that point was: $10MM in sales, 1000 active accounts, 250 suppliers, 10,000+ stock keeping ...

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