Tag Archives: WayPoint Analytics

9. Special Stocked Items Are Mostly Net-Profit Losers A Dream Request (?)

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A big customer asks you to special stock some odd items which they currently purchase direct. You say “YES!” believing what??

All Gross-Margin dollars (GM$s) are good for both company and rep commissions. One-stop-shopping will add GM$s to orders and lock in the customer. The now-more-loyal customer won’t check prices regularly on commodity items.  But, if they do, you will get last-look to meet prices on the commodities.

And the Customer is Thinking….(?)

Consolidating suppliers consolidates “procurement costs”, including Purchase Order (PO) activity costs. The bottom 20% of POs (ranked by dollars) total about 1% of the spending. If a PO costs $80, then converting 100 POs to extra line-items from a distributor will save roughly $8,000.

What’s the Net-Profit Truth?

Waypoint Analytics’ clients can run a report on “special stock” customers. The report totals the profitability of all items that only that customer bought (de facto special stock), then adds the profitability on items bought by more than one customer (the commodities) with a grand total.
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7. Empower Your Employees like the U.S. Military

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Distributors who subscribe to WayPoint Analytics’ service discover overwhelming new profit-improvement opportunities.

But, to seize the gold before competitors, the WayPoint information must be shared with all employees along with modest increases in: skills, authority, incentives and desire.

Can you “empower” and “engage” your employees?

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6. The Seven Purposes of Profits

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Distributors that have Line-Item, Profit Analytics (LIPA) can see and use seven different purposes for Profits to then grow them sensationally.

Economists See Three Purposes for Profits

  1.  Profits are a Cost of Capital.  Shareholders want a return on their money in the business. The  more risk a shareholder has of not getting their money back, the higher the return they expect. Most  distributors don’t earn a competitive, (after-tax) Return On (Shareholders’) Investment (ROI). Non-employed, minority shareholders would sell for “book value” in a heartbeat and do better reinvesting in muni bonds.

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1. AmazonSupply is Just Warming Up!

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Don’t underestimate the amount and pace of the forthcoming innovations of AmazonSupply. Read our latest “Insight” (below) and then the support, deep-dive exhibit. If you aren’t stunned and looking at AS in a whole new light, I’ll be very surprised.

The news on AmazonSupply.com will continue to accelerate. They have recently increased their items for sale into 17 (and climbing?) “vertical” distribution channels in pursuit of “business-to-business” (B2B) sales. On May 8th Forbes Magazine published an article: “Amazon’s Wholesale Slaughter”, which was long on short-term hype, but short on long-term vision.

Because Amazon is the most innovative and channel-changing juggernaut ever, what we see today at AmazonSupply is just a beginning. Their mission statement suggests more to come: “to sell everything needed to rebuild civilization”.

How will AmazonSupply.com pressure your 100-year-old channel’s service-model and rules?

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