Monthly Archives: November 2019

176. Distributor Puts Amazon’s 14 Principles to Work

2020 Companies, AmazonBusiness, Concierge Customer Service, Distribution Industry Sales, Distribution Strategy, Index, Service Value Innovation Guidelines, WayPoint Analytics

Principles for Innovating

Google: “Amazon’s 14 Leadership Principles”. Here’s how a distributor put them to work.

Principle #1 (P#1); “Customer Obsession”

(CEO speaking): We subscribe to a customer/SKU, net-profit analytics service. We were initially shocked by the net-profit winners and losers. But, if we were going to reinvent service-value in a Frugal (P#10) way, we should start obsessing about our most net-profitable customers and customer niches. Continue reading 176. Distributor Puts Amazon’s 14 Principles to Work →

175. Melting-Unicorn Wisdom for Distributors

2020 Companies, Big Data, Core Renewal, Cost-to-Serve Math, Index, Line Item Profit Analytics, LIPA, Profit Analytics, WayPoint Analytics

Unicorn Melt-Downs?

Valuations for WeWork, Uber, Blue Apron, etc. have been tanking. They all prove that a company’s business service-cost model can’t spend more costs on a unit of activity than the unit’s margin-dollar content, and then make it up on volume.    

The same economic reality hit many retail dotcoms back in 2000. Remember eToys? In ’99, they were averaging $20 in margin per order while spending an all-in cost of $300 per order for fulfillment.

Continue reading 175. Melting-Unicorn Wisdom for Distributors →

174. Doctors Prescribe: “Evidenced-Based Management”

AmazonBusiness, Big Data, Distribution Strategy, Index, Line Item Profit Analytics, LIPA, Profit Analytics, WayPoint Analytics

“Data-Driven Decision-Making” vs. HiPPO Wisdom

When decisions are made at Amazon, “the best data and innovation metrics” win. No hearsay, golden-gut, follow the herd, or political self-interest beliefs. The HiPPO (Highest Paid Person Opinion) in the room doesn’t win with suck-ups bobbling in agreement. Continue reading 174. Doctors Prescribe: “Evidenced-Based Management” →