Category Archives: Profit Analytics

130. The True Sources of Your Profit-Power?


Financial KPIs urge: “try harder, be cost efficient”. Good stuff. But, what are your analytics to achieve unique service-value capabilities which win and keep big, targeted, net-profitable accounts that average higher margin dollars per order than their average service-cost per order?  And, do they keep and motivate best-service-ethic people to:

  • Achieve the service-metric goals for the target accounts? 
  • Cure root causes for net-unprofitable customers and SKUs?


This note is one of 130 blogs posted at A big underlying theme for these postcards has been “inventing analytics to better measure and manage true causes of Profit-Power”.  

I’ve rotated through sub-topics (or lenses) including:

  1. Finance. What are the dysfunctional financial-management assumptions and blind spots that plague many distributors? 
  2. Profit-Equation Management (or order-size economics). You make money at the line, order and customer level when: Margin Dollars minus Cost-To-Serve Dollars equals Positive Profit Dollars. Most distributors vastly underestimate their losing customers, SKUs, and Sales Territories – all of which have losing Profit Equations. Building a cost-to-serve model is not hard. What is? Giving up old beliefs that all customers and gross-profit dollars are all equally good. 
  3. Customer (and SKU) Profitability Ranking Reports. By creatively focusing on the top/best and bottom/worst 5% of these reports, huge profit improvements are possible.
  4. Field research to discern next-level, service metrics for most net-profitable customers and customer niches (“nichonomics”).  Distributors who do this kill those who don’t.  
  5. High-Performance, Service Cultures to attract, engage, and focus talent needed to turn insights (from topics 2-4) into better service-value and profits.
  6. Key, defining capabilities that customers reward and no other competitors have. Topics 1-5 create these capabilities which win profitable order-streams from best customers. Then, all financial numbers (which are downstream, aggregated, averaged-out symptoms) improve.  
  7. Envisioning Omnichannel Cloud Commerce circa 2021. Do you have the analytics to inform and enable your digital transformation strategies? Topics 1-6 provide the profits, agility, and confidence to change to win in 2021.  


Would an E-book that re-sorts my blogs into sub-topics with additional comments and discussion questions be useful? If YES, let me know:

129. For Big Gains in 2019, Forgive to Change


The global, debt-fueled, everything-bubble is deflating. Will the US economy go into recession? Accurately unforecastable and uncontrollable by us! Why not, instead, make controllable changes that will out-perform possible downturn effects?     

Continue reading 129. For Big Gains in 2019, Forgive to Change

126. Weak ROI on Analytics? Very Common! So?


A recent EY survey (11-6-18) of bigger companies (than typical distributors) revealed that:

  1. 80% of firms see big upside potential with analytics, but can’t get results. There is a gap between insights and action not taken by employees.
  2. 56% said a culture of decision-making by intuition ruled. (Any intuitive account-call planning going on at your company?)
  3. 60% cited lack of budget and organizational commitment as the biggest pain point.
  4. 67% plan to hire more analytical talent
  5. But, 80% can’t find the talent they need.

Continue reading 126. Weak ROI on Analytics? Very Common! So?

125. Rent An Analytics Champ To Jumpstart a Renewal

Baseball’s Lessons For Distributors

Two books document the rise of game-changing analytics within major league baseball (MLB): Moneyball (’03) and the highly-recommended, Astroball (7/18)[i]. The 2018 MLB playoffs featured the best, most analytically-empowered teams (along with big-talent payrolls).

Studies on MLB analytics departments from ’03 to ’18 reveal that: Continue reading 125. Rent An Analytics Champ To Jumpstart a Renewal

122. Amazon News; Uberization of Local Deliveries?

“The future is already here — it’s just not very evenly distributed.” – William Gibson


    1. (Oct. 10) “The USPS seeks a 12.3% price increase” on the 40% of AMZ’s packages that it delivers. AMZ suggests that the projected $1B cost increase won’t matter in 2019. (?)
    2. (10/17) Hiring “Seasonal Delivery Associates” (for $17.25/hour). Doesn’t this compete with AMZ’s new “Delivery Partners” (6/28)? The Partner start-ups will use the 20K (initially 4.5K) of leased Mercedes Sprinter Vans. Perhaps: a) shipments are growing faster than total delivery capacity. Or, b) AMZ believes it can innovate lower last-mile costs than the USPS, etc.
    3. (11/5/18) Free holiday shipping for all (matches Target’s promotion). AMZ will win any battle of fulfillment-cost attrition because: a) It has best customer clickstream advertising income and b) most efficient warehouse costs.

Continue reading 122. Amazon News; Uberization of Local Deliveries?

118. Financial Blind-Spots of Most Distributors

What Do Line-Item Profit Analytics Reveal?

Waypoint Analytics is the only cloud-service firm that offers distributors an array of tools based on a Line-Item, Cost-To-Serve (CTS) model, and a calculation engine. The firm has, over its 10-year existence, created CTS models for well over 100 distributors in over 50 different channels. The aggregate stats for this pool of progressive distributors are startling: Continue reading 118. Financial Blind-Spots of Most Distributors