A thrilling future awaits wholesale distribution as AI-powered software redefines the industry at a pivotal moment. But vendors will have to play the opportunity right to take advantage. This piece examines how AI providers can meet the needs and expectations of distributors to become truly indispensable.
Posts By Randy MacLean
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Analytics-based policies & price breaks change everything, says Randy MacLean, president of WayPoint Analytics.
If you look around your organization and you see policies and processes that haven’t changed in years, you need to worry. If the consensus is you’re “under margin pressure” and “customer loyalty” has evaporated, those are warning bells alerting you to the lack of necessary and critical change in your company.
There are certain, specific attributes shared by companies that deliver profit rates three- to five- times the industry average. Most companies can immediately adopt them, and get significant cash-flow and profit gains beginning right away.
There’s only five fundamental items that truly influence customer purchasing decisions. Distributors with mastery of these items always lead the market, says WayPoint Analytics' Randy MacLean.
Dependence on traditional measures such as gross margin can put a drag on growth and profits. New metrics such as cash-flow value to expenses or expenses as percent of revenue, combined with customer-focused services, are propelling those who take advantage of them, says WayPoint Analytics Randy MacLean.
Distributors cannot generate high profit rates without high efficiency.
These high-volume, low-profit customers can put your company at risk.
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