This is a rapid-prototype, Release 1.0 of a book that aspires to be a “how-to” manual with a working title of: “Implementing Supply-Chain-Math, Selling Solutions for Distributors”. Whether release 2.0 gets done remains to be seen.
So far, the most important chapter of this E-book has been the three sections of Chapter Five. Chapter Five provides an exhaustive list of reasons (39) why LIPA Management can’t work coupled with exhaustive rebuttals to all of the objections.
When industry veterans see that big customers can be unprofitable, they don’t choose to believe it. The same disbelief occurs when supplier lines that have high turns with high GM% (turn-earn) are big losers. The reason is that the line is comprised of SKUs that are massively picked (bits and pieces) for which line/picking costs vastly exceed the margin dollars in the pick.
For a company to become a successful user of LIPA Management, all top executives have to know the answers to all of the objections cold.