Category Archives: LIPA

89. Get an Outrageous ROI from Analytics

Big Data, Index, Line Item Profit Analytics, LIPA, Profit Analytics, WayPoint Analytics

Most distributors have analytics software, but few get needle-moving results. So, what’s missing?

A case study’s best practices

A recent Harvard Business Review blog reported on a company that took their analytics seriously. Here’s what they did:

  • Created a separate analytics business unit that reported to the C-suite
  • Staffed the new business unit with young, ambitious people from outside the industry
  • Charged the team with achieving at least a 10X ROI for the unit’s budget cost
  • Targeted customer-centric results for the operating companies
  • Trained the operating companies to take over and improve upon the new initiatives
  • Incented both the analytics and operating folks with the same profit increases

The first year the new unit hit 46X their budget. Now, with all the operating companies begging for the no-charge analytics help, the unit hit 106X in year two and 200X in year three. Continue reading 89. Get an Outrageous ROI from Analytics →

35. Don’t Be A Fading-Economy Statistic

Distribution Strategy, Index, Line Item Profit Analytics, LIPA, Profit Analytics

The Q2 earnings for publicly traded distributors aren’t pretty. After netting out financial tricks, most distributors are reporting lower sales and profits. Going forward, will you be happy with just matching them, cutting costs, and trying harder? What about profitability and fading-economy statistics?

Why Not Find More Gold In Big Accounts?   

How? Apply a cost-to-serve (CTS) model on every account so you really understand your net profit and loss potential, and the fading-economy statistics. Then, investigate the sub-groups to uncover the: Continue reading 35. Don’t Be A Fading-Economy Statistic →

32. Steal Selling Ideas From Leading Edge Distribution Channels

Distribution Industry Sales, Index, Line Item Profit Analytics, LIPA

To reinvent your selling value, look for ideas in the most advanced distribution channels. What are reps in those micro-worlds doing that you can borrow and adapt to yours?

A Technical Product Rep With 4 Customers

Channel reps tout their product expertise. But, my friend, Alex, is the real deal. He sells artificial joint-parts to orthopedic surgeons. His “territory” is four doctors. He assists them in ordering the right, best-fit parts for each patient’s joint and conditions. Then, he often dons surgical scrubs to advise the docs during surgeries. He is the expert when patients have odd joint issues (upon open inspection) or need newer-model or rarely-used parts. Continue reading 32. Steal Selling Ideas From Leading Edge Distribution Channels →

18. Re-Think 2016 Sales-Growth Plans

Cost-to-Serve Math, Index, Line Item Profit Analytics, LIPA, Profit Analytics

Are your 2016 Sales-Growth Plans guided by some of these unspoken, dated assumptions?

  1. All expenses are fixed (for the time being).
  2. Incremental, new sales and Gross Margin Dollars (GM$s) (less some commissions) flow through to profits and earn more rebates at year end. Carpe economies of scale!
  3. To get more sales, get more reps to make more calls on more accounts with selling scripts for products from “key suppliers”.

Why Are Macro and Micro Numbers Flashing Red?

Continue reading 18. Re-Think 2016 Sales-Growth Plans →

15. SKU-Profit Winners, Losers and Amazon Tactics

Cost-to-Serve Math, Index, LIPA, Profit Analytics

Amazon Tactics for Distributors

200 of your SKUs are hugely, net-profitable, but, another 200 are hugely unprofitable. Amazon knows SKU profitability and exploits traditional competitors’ informational blindness. Want to get smarter, too?  Here’s how:

Get Profit-Equation Data

Amazon knows the following “profit equation” for every SKU (customer, etc.):

Continue reading 15. SKU-Profit Winners, Losers and Amazon Tactics →

10. Economy Worries in Distribution? Provide “Challenger” Scripts for Your Reps

Index, LIPA, WayPoint Analytics

Global economic clouds are gathering. Rain or shine, why not get bigger chunks of your best customers’ business with lower service-activity costs?

A recommended book, The Challenger Sale by Brent Adamson, tells you how. The book’s research proves that “Challenger Reps” killed the “nice guys” at the bottom of the 2009 downturn.

The Challenger Rep has better scripts to pitch to customers. Their solutions are to work together to reduce shared, heretofore, hidden activity costs to improve both parties’ bottom lines. The nice guys — who don’t rock the boat, suck up and reactively hustle harder for any customer request — are outdated.

Since 1988, purchasing has shifted from wanting just “Price” and “Availability” to also wanting replenishment-process cost reductions (“Supply Chain”). You’ve seen this!

Continue reading 10. Economy Worries in Distribution? Provide “Challenger” Scripts for Your Reps →