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Make Your Data Work to Grow Profitability

MDM Editor Lindsay Konzak recently attended the Advanced Profitability Improvement Conference in Arizona, featuring some of the top speakers on wholesale distribution strategy and management, including Brent Grover, Bruce Merrifield, Tony Pericle, Jon Schreibfeder and more. The focus of the conference was how distributors can make smarter and more informed decisions about where to target their resources to boost margins going into 2013. Analytics should be the foundation of any move on this front, the speakers said. This article presents a summary of main ideas presented by some of the speakers at the conference.

Expenses exceed gross profit on too many sales, according to Randy MacLean of Waypoint Analytics. In fact, he says, “there is no correlation between gross margins and profit.” He was speaking at the semiannual Advanced Profitability Improvement Conference in September in Scottsdale, AZ. So what happens? Where do the profits go?

MacLean says there are five ways profits disappear before reaching the bottom line.

The cost to serve a ...

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Distributors Put Inventory Under the Microscope

Customers are demanding more inventory management services, including vendor managed inventory and consignment. Distributors are also focusing more on how they can improve how they manage inventory, paying close attention to getting the most out of their purchasing and technology.

This article is part of the 2012 Distribution Trends Report. To access this annual update for premium subscribers, subscribe now or log-in.

 

 

 

 

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Inventory: The Good, The Bad and The Ugly

There’s always room for improvement in inventory management no matter the size of the company. Jon Schreibfeder, president of Effective Inventory Management and author of Achieving Effective Inventory, shares the first steps a company should take to manage its inventory. Schreibfeder was featured in a recent MDM Webcast, Inventory Management Best Practices for 2012, available at www.mdm.com/inventory.

For wholesale distributors, managing inventory effectively is essential for profitability. After all, the heart of most distributors’ businesses is the warehouse.

But not all distributors know how to effectively manage their company’s inventory, says Jon Schreibfeder, president of Effective Inventory Management, Inc., and author of Achieving Effective Inventory.

In the recent MDM Webcast, Inventory Management Best Practices for 2012, Schreibfeder presented an approach to separating inventory as a way of determining its profitability. In order to gain effective management over a company’s inventory, business leaders need …

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Inventory Management a Top Priority

With increases in demand, the need to have more inventory in stock to meet customer needs seems logical. But uncertainty about the economy and inflation, among other things, may be keeping this trend at bay.

This article is part of the 2011 Distribution Landscape Report. Subscribers: Log-in to access this article.

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