Must-Read Blog Series
Go to this link for an article on MSC Industrial and Crescent Electric:
Pay attention to the specific features, benefits and design guidelines that are reported. Consider doing the same for the reviews for: Essendant’s (8/9); Hajoca’s (8/28); Cardinal Health’s (8/31); Univar’s (7/30); and Blair Candy (7/25: small-firm story!) Continue reading 114. Reviews on Best Distributor Web Sites: MSC Industrial, Crescent Electric, Essendant, Hajoca, et. al.
Moneyball and Astroball Lessons
The book Moneyball was published in 2003. At the time, Major League Baseball (MLB) managers despised it, because the book made them look like old-school ignoramuses. A highly-recommended new take published in July 2018 and titled Astroball, summarizes the league’s transition since 2003.
Here are a few key points from the book: Continue reading 113. It’s Human Nature to Resist Analytical Opportunities
Problem: Most Distributors Can’t Do Needle-Moving Change
B2B Cloud Commerce will be shaking business models in most channels by 2021. But, many distributors can only fine tune their past. Why? Check the fuzz factor on these four vitals: vision; strategy; innovation metrics; and can-do culture.
A Vision That Engages All Employees (and Stakeholder Groups)
What would employees think if you told them that: Continue reading 111. Re-Tune Your Vision, Strategy, Analytics, and Culture
Big-Accounts Range Widely in Net Profitability
Distributors! When you rank your customers by net-profitability, and then keep segmenting, you can find some amazing facts:
- Pareto’s law applies to big accounts, but only for margin dollars, not for profits! The biggest 20% of companies will contribute around 80% of gross-margin dollars.
- Only a third of the big accounts are net-profitable, and they range from amazingly so to modestly so.
- The middle third will be around break-even before deducting sales commissions and modest losers after deducting commissions.
- The bottom third are losers before commissions due to excessive activity costs for, usually for small-dollar picks and orders
- A few may be shockingly unprofitable.
Continue reading 110. Know and Partner Your Top 2% Highest Profit Value Accounts
Baseball’s Begrudging Adoption of Analytics
Since the book Moneyball was published in 2003, all professional sports have embraced analytics, but none more than baseball.
Baseball executives initially hated the book Moneyball because it made them look incompetent. Then, one-by-one teams started to experiment with analytics; in particular, two teams with new owners who had gotten rich using analytics elsewhere. Continue reading 109. Astroball: Taking Lessons from the Analytical Champs
Distracting Stats v Strategic Profit Intent
Amazon is secretive, even deceptive. For instance, it trumpets amazing stats in press releases that can distract us from seeing their strategic goals. Maybe this is part of the plan. Why spark early competitive responses?
Consider AMZ-Biz. The last official numbers we saw for sales, resellers, and buyers were at year-end 2016. Wouldn’t you brag on growing 20% per month?
So what final profit streams is AMZ-Biz envisioning? How about fees from: Continue reading 108. Amazon Business Has a Secret Plan