Industrial Distribution Program
DwIght Look CoLLege of engIneerIng
PROFESSIONAL
DEVELOPMENT
PROGRAMS
the texas A&M Advantage
For 60 years the Industrial Distribution Program has been providing
the industry with cutting-edge professional development workshops.
APPLIED RESEARCH Creating Competitive Advantage GRADUATE PROGRAM Developing Distribution Leaders CONTINUING EDUCATION Enabling Branch-Line Managers UNDERGRADUATE PROGRAM Educating Future Employees
training Future
Leaders
Knowledge
Creation
Knowledge
dissemination
THOMAS & JOAN READ CENTER
new industry
needs
The Thomas and Joan Read Center at Texas A&M University is the only university center in the United States that focuses on research and education in industrial distribution. Our professional development and
educational workshops are designed to increase your organization’s competitive advantage and profitability. We focus on relevant and actionable education through proven methods and tools. Some of the unique characteristics of our programs are relevant learning, distribution focus, research-based education, distribution domain experience of our faculty, and access to our research solutions and services.
Learn secrets to implement
key best practices in
3-6 Months
Offer education
sessions in
13
Countries
Program duration is
1-5 Days
why Connect with Us?
Number 1
Industrial Distribution program in the world.
24 Instructors
Average teaching experience
of at least 16 years
Learn secrets to implement
key best practices in
3-6 Months
10
unique topics
that will boost your
firm’s bottom line.
Proven methods
driven by
cutting edge
research for over
55 years
Over 950
business professionals attend
our workshops every year
Offer education
sessions in
13
Countries
Program duration is
1-5 Days
Help more than
265
companies each year to create
competitive advantage
optimizing Distributor Profitability
Best Practices to a Stronger Bottom Line
PROGRAM OUTLINE
>> Motivation and Trends
>> Distributor Profitability Framework >> SOURCE best practices
>> Profitability analyzer >> STOCK best practices >> Shareholder value exercise >> STORE & SHIP best practices >> SELL best practices
>> Best practice implementation >> Self-assessment guide for
immediate action
WhO ShOULD ATTEND
Strategic Business Managers Regional / Functional Heads Branch / Operations Managers Finance Managers / Controllers C-level Executives / Owners
KEy TAKEAWAyS
>> Proven and structured approach to assess your
business performance
>> Ready-to-use process assessment toolkit >> Tools to communicate value of best practices
to top management
>> Roadmap based on successful best practice implementation >> Achieve stronger bottom line and improve cash flow >> Real-world case studies
>> Team exercises
“Delivered the tools we can use
to optimize shareholder value.
A picture is worth 1,000
words and A&M’s Distributor
Profitability Framework chart
is worth 100,000 words!”
- Ron Cedruly, CFO, Henrietta Building Supplies
1.5 DAyS
Business Processes Process Metrics Finance Elements Financial Drivers
DISTRIBUTOR PROFITABILITY FRAMEWORK
Linking Business Processes and Shareholder Value
STORE SELL SHIP SUPPLY CHAIN PLANNING SUPPORT SERVICES SOURCE STOCK Gross Margin Days Payable Outstanding Cash-To-Cash Cycle Time Working Capital Inventory Turnover GMROII Total Asset Turnover Revenue Growth Cash-To-Cash Cycle Time Working Capital Inventory Turnover GMROII Total Asset Turnover Revenue Growth Gross Margin B U S I N E S S P R O C E S S E S S H A R E H O L D E R V A L U E http://supplychain.tamu.edu © 2008 Supply Chain Systems Laboratory, Texas A&M University
SHAREHOLDER VALUE
GROWTH PROFITABILITY ASSET
EFFICIENCY CASH FLOW BUSINESS
PROCESSES FINANCIALDRIVERS
SOURCE STOCK STORE SELL SHIP SUPPLY CHAIN PLANNING
SUPPORT SERVICES
Days Sales Outstanding Gross Margin Total Asset Turnover Revenue Growth EBITDA Supplier Management (Strategic Sourcing) Fleet Management Dispatch Management 3PL / Carrier Management Customer Order Fulfillment Sales Management Pricing Management Marketing Management Warehouse Fulfillment (Inbound) Warehouse Management Inventory Management
Supply Chain Optimization
Information Technology Finance Management Human Resource Management
Product Receiving Product Put-Away Product Placement Location Type Location Identification Product Storage Cycle Counting Sales Force Stratification Mapping Customers & Sales Force Customer Stratification Cost To Serve Assessment New Customer Identification Pricing Optimization Voice Of Customer New Product Introduction Market Selection & Target Strategy Customer Portfolio Management Fleet Capacity Management Fleet Cost Assessment Routing Optimization Loading Optimization Carrier Selection & Performance Product Picking Order Delivery
New Facility Location Network Optimization Resource & Asset Alignment
(Supplier - Inventory - Customer)
Service Level Optimization
System Integration Credit Management Training & Development Recruitment & Retention Compensation Design
Total Landed Cost Payment Terms Quality & Flexibility Lead Time & Variability Fill Rate Growth Potential
Data Integrity Invoice Accuracy Past Due Tracking Efficiency Training Effectiveness (Benefit-To-Cost Ratio) Time & Cost To Hire Retention Rate Accuracy & Efficiency Space Utilization Item & Location Accuracy
Sales Force Mix Customer Mix Cost-To-Serve & Right Price Time-To-Market Qualified Leads Per Marketing Activity
Asset Utilization On-Time Delivery Accuracy & Efficiency
Cost Of Goods Sold Accounts Payable Inventory Revenue
Inventory Revenue Cost Of Goods Sold
Accounts Receivable Revenue Marketing Expenses (Payroll, Promotion, Media)
Fixed Assets (Payroll, Promotion, Media)
Transportation Expenses Warehouse Payroll Revenue GROWTH PROFITABILITY CASH FLOW
Total Asset Turnover Working Capital Inventory Turnover EBITDA Revenue Growth
Working Capital Days Sales Outstanding Account Receivable Turnover EBITDA Revenue Growth ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY Supplier Selection Supplier Performance Supplier Stratification Supplier Relationship Inventory Stratification What to Forecast? Demand Classification Forecasting Method When to Order? (Re-Order Point) How much to Order? (Order Quantity) Replenishment Policy
Inventory Mix Forecast Accuracy Fill Rate Total Landed Cost
Revenue Warehouse Payroll Warehouse Rent Inventory Write-Off
Total Asset Turnover Revenue Growth EBITDA
Total Asset Turnover EBITDA Revenue Growth
Fixed Assets (Plant, Property, Equipment)
Inventory Operating Expenses (Transportation & Warehouse)
Revenue Inventory Accounts Receivable Additional IT Expenses Bad Debt (Write-Offs)
Hiring & Training Cost Revenue
Optimal Network Location Optimal Resource Deployment Optimal Service Level
Pricing optimization
Striking the Right Balance for Margin Advantage
PROGRAM OUTLINE
Part 1: Framework
>>Motivation and Trends
>>Pricing Optimization Framework
Part 2: Analytics
>>Customer Stratification >>Item Stratification >>Customer’s Item Visibility >>Item Unit Cost Level >>Customer–Item Gross Part 3: Optimization >>Pricing Rules Part 4: Execution >>Sensitivity Analysis >>Implementation >>Roadmap to Success
WhO ShOULD ATTEND
Sales Managers
Branch & Regional Managers Pricing Professionals
Purchasing Professionals Management Professionals
KEy TAKEAWAyS
>> Adopt a practical—yet scientific and simple—framework
>> Bring a ”new science” to the “abstract art of pricing”
>> Choose key variables that should drive your pricing decisions
>> Deploy existing, readily available information from your IT systems
>> Expand your customer stratification results for optimal pricing
>> Fulfill margin goals systematically
>> Give meaningful, concise information to your sales force
so you can optimize margins
>> Hit gross margin improvements of 150 basis points
or higher within months
>> Implement pricing best practices with minimal
resources for a higher ROI!
“The pricing optimization program has been an invaluable tool for highlighting opportunities to improve margins. Implementing the principles in a pilot location raised gross margins by over 3% in less than a year. It has been an eye-opening experience for those salespeople using the cost-plus method for determining sales price.”
- Kevin Martin, Vice President of Operations, Pipeline Packaging
Texas a&M Pricing
MeThodology iMPacT
(Real World Results - HVAC Distributor)
Branch 1
($3.3MM Sales) ($4.2MM Sales)Branch 2 ($2.4MM Sales)Branch 3 ($11.4MM Sales)Branch 4
18.4% 14.9% 16.5% 36.3% 24.4% 21.8% 19.4% 48.6% BEFORE AFTER 1.5 DAyS
Sales and Marketing optimization
Developing Competitive Value Propositions in Distribution
Strategic Planning Process Process Metrics Financial Elements Financial Metrics
SALESAND MARKETING FRAMEWORK Linking Sales and Marketing Processes to Shareholder Value & Customer Service
S H A R E H O L D E R V A L U E C U S T O M E R S E R V I C E
BUSINESS DEVELOPMENT (Markets, Products & Services)
New market segment development
New products and services development
Existing products and services management
Existing market segment management
SALES FORCE DESIGN, DEVELOPMENT AND MANAGEMENT
PERSONAL SELLING (SALES FORCE) MARKETING COMMUNICATIONS
Customer mix - customer stratification Product & services mix Geographic mix Number of identified opportunities (leads, new customers, etc.) Number of realized opportunities Opportunity-to-sales ratio Chargeback / rebate by supplier Returns trend by supplier Quality index by supplier Warranty Issues - frequency & resolution (time and cost) Safety / regulation compliance Customer satisfaction index Customer’s product & service needs (voice of customer) Number of new products introduced Coordination with promotion, sales, purchasing & vendors Training & demo programs completed Customer satisfaction index Number of new market segments Identified Segment attractiveness (potential) Segment competitiveness Coordination with vendors, sales and potential customers Potential core customer profiling Qualified leads Alignment with sales force Synergy among media mix Effectiveness metrics Efficiency metrics Qualified customer complaints Qualified sales force complaints Ease of coordation and control Voice of customer Sales people complaints & morale Sales turnover Sales or GM per salesperson Cost of sales Qualified customer complaints Qualified sales force complaints Patterns in quota attainment Alignment with sales strategy Goal achievement Alignment with company objectives and customer needs Simplicity, consistency, ease of implementation, results and reward relationship Sales force satisfaction (engagement and pay variation) Average training hours Training frequency Training content mix Training method mix Degree of consensus in the sales system Alignment with sales strategy Relevance to selling environment Sales force efficiency Sales force effectiveness Level of integration with sales process Source of value for sales force Complexity & flexibility of tools Coordination between sales and IT Sales force retention or attrition rate Percentage of low performers Quality of hire Sales force satisfaction index
Incremental revenue Operating expenses (cost-to-serve) Accounts receivables Operating expenses (cost-to-serve) Outstanding credit - rebate / chargeback / Volume discount Impact on revenue Revenue by product Revenue by market segment Operating expenses (cost-to-serve)
Incremental revenue Advertising / promotion expenses (payroll, media, services)
Revenue Selling expenses Operating expenses (cost-to-serve)
Revenue Selling expenses Operating expenses (cost-to-serve)
Recruiting and hiring Cost Revenue Operating expenses (cost-to-serve) Training expenses Revenue Selling expenses Operating expenses (cost-to-serve)
Revenue Growth EBITDA Days Chargeback Outstanding
Days Sales Outstanding Market Share
An Alliance of the NAW Institute & Texas A&M University COMPANY OBJECTIVES SALES FORCEPRIORITIES
CUSTOMER NEEDS Value Proposition Sales Process Sales Management Identify Leads Interview Potential Customer Discover Potential Present to Customer Design Solution Follow-up & Close the Sale Deliver Products &Services
Post-SalesSupport Negotiate with Customer
VALUE POSITIONING SALES AND MARKETING STRATEGY
Cross Functional Team
MARKET SEGMENTATION MARKET SEGMENTATION 1 2 3 TARGET MARKET SELECTION VALUE POSITIONING SUPPLY CHAIN PLANNING STOCK Warehouse Fulfillment Warehouse Management Number of Locations Inventory Stratification Forecasting Replenishment Policies STORE Strategic Sourcing Supplier Management SOURCE SHIP Information Technology Finance Management Human Resource Management
SUPPORT SERVICES C O M P A N Y V I S I N & M I S S I O N
Sales & Marketing Strategy Sales & Marketing Processes What is the market?
1 Market Analysis (Supplier & Customer-focused)
Competition Analysis
Economy & Political Impact
Technological & Social Change
Where are we? 2
SWOT Analysis
Current Performance
4 Stakeholders
- Shareholder, Customer, Employee & Supplier
Where do we want to be? 3 Shareholder Value Expectation
Customer Needs
Company Objectives / Goals
Benchmarking
Why should customers do business with us? 5 Core Competence
Value Proposition
Competitive Advantage
How do we get there?
4
Market Penetration
(New) Product and Service Development
(New) Market Development
Diversification
COMPANY OBJECTIVES
(Shareholder Value Goals)
COMPANY STRATEGY FUNCTIONALOBJECTIVES
Communication Objectives
Target Audience
Communication Budget
Message (value proposition)
Media Mix
Performance Evaluation
SELL
Products (Brand)
Inventory Availability Breadth and Depth (Capital)
Market Coverage (Exclusivity)
Price (Supplier Driven) Value-add Services (Capability) Delivery (Capability) Facilities (Capability) Market Coverage (Capability) Cost (Cost-to-serve Driven) Direct Sales Force (Market / Industry Knowledge & Selling Skills) Technical Support (Product & Application Knowledge) Price (Market Driven) Credit Terms (Capital) Customer Service (Order Management) Market Presence & Experience (Knowledge & Relationship) Value-add Services (Capability)
SOURCE & STOCK
SELL
SUPPORT SERVICES
STORE, SHIP & SUPPLY CHAIN PLANNING
VALUE PROPOSITION
CREATE VALUE PROPOSITION COMMUNICATE VALUE PROPOSITION DELIVER VALUE PROPOSITION SUSTAIN VALUE PROPOSITION
Diversification Product & Services Development Market Development Market Penetration BUSINESS DEVELOPMENT CATALOG & LINE CARDS
WEBSITE DIRECTMAIL SOCIAL MEDIA& PR EMAIL CAMPAIGN TRADESHOW ADVERTISING(ONLINE &OFFLINE)
CUSTOMER SERVICEREP
FIELD SALESFORCE SPECIALIST
CUSTOMER
Sales Process
Sales Force Structure
Sales Force Size
Sales Force Deployment
Sales Force Compensation
Sales Force Recruitment
Sales Force Training
Sales Force Culture
Sales Management
Sales Support Tools Hit rate or conversion rate Completeness of sales process
Revenue Growth Market Share EBITDA" EBITDA Revenue Growth Market Share EBITDA EBITDA" Return on Marketing Spending
(Advertising & Promotion)
www.naw.org/crdbp http://id.tamu.edu Created by Senthil Gunasekaran, Pradip Krishnadevarajan and Barry Lawrence
www.nawpubs.org
Revenue Growth Market Share EBITDA" Gross Margin Days Sales Outstanding
EBITDA Total Asset Turnover
Revenue Growth Market Share EBITDA" Gross Margin Days Sales Outstanding
EBITDA Total Asset Turnover
GROWTH PROFITABILITY EFFICIENCYASSET
SELL FUNCTIONAL STRATEGY Fleet Management Dispatch Management 3PL/Carrier Management Customer Order Fulfillment CASH FLOW
© 2012 Global Supply Chain Lab, Texas A&M University
1 2 4
3 Market Macro Segments
Clustered Micro Segments Micro Segments A B E C D F
PROGRAM OUTLINE
>> How to link sales and marketing to
shareholder value?
>> Sales & marketing strategy >> Market segmentation >> Value proposition >> Business development >> Customer stratification >> Marketing communications >> Sales force design & development >> Sales force management
WhO ShOULD ATTEND
Sales & Marketing VP Sales & Marketing Directors Marketing Manager
Regional / Functional Heads
KEy TAKEAWAyS
>> Proven and structured approach to assess your sales
and marketing processes
>> Ready-to-use process assessment toolkit
>> Tools to communicate value of best practices to
top management
>> Roadmap for increasing sales force effectiveness >> Achieve revenue growth & cash flow
>> Real-world case studies >> Team exercises
“I am blown away by the scope of this Sales and Marketing Optimization book and the depth of
knowledge and real-world experience it contains. I only wish I had a reference like this at the beginning of my career. Fortunately, I have it now and it’s not too late to do something with it! This book is very actionable with constant emphasis on measurable results at the shareholder and stakeholder levels. This is simply the best sales and marketing book for distributors that I have ever read!”
- Byron Potter, Vice Chairman and CEO, Dallas Wholesale Builders Supply, Inc.
1.5 DAyS
optimizing growth and Market Share
Achieving Sustainable Profitable Growth
D
ISTRIBUTIONG
ROWTHF
RAMEWORKGROWTH PROFITABLE GROWTH SUSTAINABLE PROFITABLE GROWTH COUNCIL F R RESEARCH ON DISTRIBUTOR BEST PRACTICES An Alliance of the NAW Institute & Texas A&M University
CRDBP C O M P A N Y V I S I N & M I S S I O N www.naw.org/crdbp http://supplychain.tamu.edu © 2011 Global Supply Chain Laboratory
www.nawpubs.org
Strategic Planning Growth Dimensions Growth Processes Metrics Financial Drivers
WHY SHOULD CUSTOMERS DO BUSINESS WITH US? 5 HOW DO WE GET THERE? 4 WHERE DO WE WANT TO BE? 3 WHERE ARE WE? 2 WHAT IS THE MARKET? 1 CAPABILITY RISK MANAGEMENT Growth Strategy Growth Drivers Growth Mechanism
Customers Human andIT Capital
Suppliers Shareholders GROWTH FORCES SUSTAIN GROWTH GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY GROWTH PROFITABILITY CASH FLOW ASSET EFFICIENCY >> Gross Margin (GM%)
>> Operating Margin (EBITDA%)
>> Cash Conversion Cycle (DSO + DOI - DPO) >> CAGR (Compound Annual Growth Rate) >> Impact on Competitive Advantage >> Risk Quotient >> ROIC (Return On Invested Capital) S H A R E H O L D E R V A L U E C U S T O M E R S E R V I C E GROWTH PROFITABILITY ASSET EFFICIENCY CASH FLOW Opportunity Assumptions Retention Strategy Capability Assumptions OPPORTUNITY
GENERATING GROWTH MANAGING GROWTH SUSTAINING GROWTH
1 2 Key Attributes: INNOVATION FOCUS STRATEGIC FIT Key Attributes: ALIGNMENT COMMUNICATION ACCOUNTABILITY Key Attributes: VALIDATION CONSISTENCY STABILITY 3
PROGRAM OUTLINE
>>Distribution growth framework
Part 1 – Generating Growth
>>Growth strategies
>>Growth drivers
>>Growth mechanisms
Part 2 – Managing Growth
>>Profitability drivers
>>Resource drivers
>>Growth barriers
Part 3 – Sustaining Growth
>>Growth blind spots
>>Capability traps
>>Growth and profitability benchmarking
WhO ShOULD ATTEND
C-level executives / owners Sales & Marketing VP / Directors Regional / functional heads Business development managers High potential candidates
KEy TAKEAWAyS
>> Proven and structured approach to
assess your growth history
>> Ready-to-use growth assessment toolkit
>> Success and failure – stories & lessons
>> Growth strategies to implement
>> Achieve profitable revenue growth
>>Real-world case studies
>> Team exercises
“The Growth program provided valuable
insights and allowed us to benchmark
against best practices for strategic growth.
The program validated many of our current
initiatives, but also illuminated areas to
target for improvement. It was well worth
the investment of time and resources!”
- Bob Dill, President & CEO, HISCO
1.5 DAyS
optimizing Channel Compensation
Managing Channel for Collaborative Advantage
PROGRAM OUTLINE
>>Channel management framework
>>Channel goals
>>Supplier analytics
>>Commitment analysis
>>Performance analysis
>>Contribution analysis
>>Communicate for channel effectiveness
>>Channel value proposition
>>Channel compensation elements
>>Measuring channel alignment
>>Channel adaptability
WhO ShOULD ATTEND
C-level executives / owners Supplier development executives Marketing VP / directors
Product managers
Business development managers
KEy TAKEAWAyS
>>Proven and structured approach to assess your
channel health
>>Ready-to-use channel assessment toolkit
>>Channel success and failure – stories & lessons
>>Specific ideas to optimize channel compensation
and bottom line
>>Real-world case studies
>>Team exercises
“Real world-examples with
realistic framework made the
content very rich. The program
helped us generate specific
ways to improve our channel
compensation.”
- National Channel manager, Electrical Distributor
ChANNEL
COMPENSATIONS
Types of Capital
INNOVATION MARkET ACCESS PROCESS TECHNOLOGY INFORMATION kNOWLEDGE HUMAN FINANCIAL RELATIONSHIP POLICY SUPPLY CHAIN ORGANIZATIONAL 1.5 DAyS Financial PerFormance Su PP ly c hain Per F ormance SERVICE DRIVERS VALUE DRAINERS VALUE DRIVERS VOLUME DRIVERS Strategic Alignmentthe new Science of Customer Service
Building a Sustainable Competitive Advantage
PROGRAM OUTLINE
DAy 1
>>Motivation and trends
>>Service Growth & Differentiation
>>Customer Service Attributes
>>Conflict Resolution & Service Recovery
>>Lifetime Value Calculations >>Service Strategy & Stratification DAy 2
>>Service Culture Building blocks
>>Service Standards & Innovation >>Employee Satisfaction Drivers
>>Talent Selection
>>Empowerment and Flexibility
WhO ShOULD ATTEND
Customer service and insides sales personnel Branch, regional, sales and marketing managers Executive Management
KEy TAKEAWAyS
>> Retain your customers for life
>> Make customer service your competitive advantage
>> Easily ascertain the drivers of customer service
>> Service strategies for each customer type
>> Discern the 3R’s – Responsibilities, Relationships and
Roles of in delivering customer service
>> Structured process for service recovery
>> Best practices to build a strong customer
service culture and brand
“We know the direction and changes we need to make to differentiate us from our competitors. Knowing and understanding our customers expectations allowed us to quickly focus our attention on the areas we needed to improve immediately. It strengthened our customer service team and our ability to provide the service our customers expected.”
- Darrell Johnson, VP Customer Service, Womack Machine Supply Company
EMPLOYEE
FIRM
CUSTOMER
SERVICE PERFORMANCE GAP
LISTENING GAP & STANDARDS GAPSERVICE DESIGN
2 DAyS accurate honest innovative responsive timely enthusiastic trustworthy consistent transparent
executive Session on Distributor
Competitive Advantage
In Pursuit of Competitiveness
WhO ShOULD ATTEND
Executive and Senior Management High Potential Candidates
for Management Strategic Managers
Regional Profit Center Heads Business Development Managers
“We are impressed
with the material and
its potential impact on
our profitability.
Truly informational
and education for
the times.”
- Gary McKillican, President and CEO, McKillican International, Inc.
AChIEVING COMPETITIVE GROWTh - how to generate growth while achieving
competitive advantage?
Generating Growth Opportunities
• Growth Framework
• Growth Drivers and Strategies • Growth Mechanisms
SUSTAINING COMPETITIVE GROWTh- how to sustain growth while sharpening
competitive advantage?
Sustaining and Growing Margins – Pricing Optimization
• Primary Drivers – What are the key variables
that should drive a pricing decision?
• Analytics – How to analyze each variable? • Optimization – Developing and building
pricing rules
• Execution – Roadmap for success
MANAGING COMPETITIVE GROWTh - how to manage profitability while growing? Optimizing Distributor Profitability
• Business Process Framework • Financial Framework • Optimizing Profitability –
The Five-Step Methodology
• Double EBITDA and Triple RONA
Building Competitive Advantage
• Sales and Marketing Strategy • Market Segmentation • Target Market Selection • Competitive Value Proposition
DAy
1
DAy2
DAy3
Sales and Marketing Processes
• Customer Stratification
• Sales Force Design, Development
and Management
• Marketing Communications
Sustaining Growth – How to sustain profitable growth against strategic risk?
• Growth Barriers
• Blind spots – Opportunity & Capability • Risk Management
• Competitive Value Proposition
3 DAyS
Distribution Manager Certificate Program
THE 360 Degree Manager
PROGRAM OUTLINE
Financial Management
>> Basis and Financial Statements
>> Key Performance Indicators Optimizing Customer Service
>> Creating Excellent Customer Service
>> Customer Service Metrics Lean Fundamentals
>> The Lean Philosophy
>> Basic Tools and Techniques A Solution-based Sales Process
>> Attention-Discovery-Solution Inventory Management
>> Fundamentals
>> Stratify-Forecast-Replenish
Leadership & Team Development
Providing Direction for Sales Management Effective Communication & Implementation
WhO ShOULD ATTEND
Branch Managers Sales Managers
High Potential Candidates for Management Distribution Professionals
DELIVERABLES
“Excellent experience
to learn, improve and
manage processes to
optimize profitability.”
- Ernesto Tovar, Sales & Operation Manager, HISCO 5 DAyS sell soUrce sTore shiP sTocK • Information Management • Human Resource Management • Finance Management
replenish
Intensive Inventory Management
Unlock Your Inventory’s Potential
PROGRAM OUTLINE
Methods
>>Inventory Policies
Forecasting
>>Demand Pattern Analysis
>>Methods and Accuracy
Replenishment
>>Safety Stock Calculation
>>EOQ and Reorder Point
>>Service vs. Cost Matrix
Benchmarks
>>Key Performance Indicators
>>Process Assessment
>>Stock Analyzer
>>Best Practices
WhO ShOULD ATTEND
Inventory Planners / Buyers Inventory Managers Purchasing Professionals Supplier Relationship Managers Category / Product / Brand Managers
Anybody who manages inventory in your firm
KEy TAKEAWAyS
>>Increase service level
>>Improve forecast accuracy
>>Optimize safety stock investment
>>Understand demand and supply variability
>>Reduce obsolescence
>>Effectively redeploy slow-moving inventory
“Through knowledge
learned from the inventory
management program,
attended by all our
management and key
salespersons, we have
reduced our total
inventory levels by
over 20%.”
- Brent A. Burns,
Building Materials Distributor
Transform your company data to meaningful actionable results using inventory
management best practices over this 5 day journey
D A T A
M E T H O D O L O G Y
R E S U LT S
Bring Your
CompanY
information
• Financial
• Operational
• Sales
100% 80% 60% 40% 20% 0%AVG. INV ($) TOTAL SALES ($) TOTAL GM ($)
$14.5 MM $8.5 MM $10.3 MM $3.7 MM $4.3 MM $41.3 MM $16.3 MM $23.3 MM $ 54.4 MM $81.3 MM $12.8 MM $188.1 MM $5.1 MM $5.2 MM $10.3 MM $16.7 MM $2.3 MM $39.6 MM stratification lead Time demand during
lead Time safety stock
Forecasting Fill rate reorder Point replenish 5 DAyS
Intensive Customer Stratification
Best Practices for Boosting Profitability
PROGRAM OUTLINE
Part 1—Customer Stratification:
The Idea
>>Motivation and Trends
>>Stratification Framework
Part 2—Customer Stratification:
The Idea in Action
>>Customer Buying Power
>>Customer Loyalty
>>Customer Profitability
>>Cost-to-Serve (CTS)
>>Bringing It All Together
>>Customer Strategies
>>Implementation
>>Real-World Examples
>>How to Apply This at Your Firm
WhO ShOULD ATTEND
Sales and Marketing Managers Business and Branch Managers Pricing Professionals
Business Analytics Team
Distribution Management Professionals
Anyone in your firm who works or communicates
KEy TAKEAWAyS
>> Effective classification of your customers
>> Structured easy-to-understand approach
>> A practical approach to determine ‘cost-to-serve’ customers
>> Leverage existing system information
>> Maximize your ROI on sales resources while balancing
customer service
>> Optimize sales force time investment
“‘Customer Stratification’ has
the power to enable us to
transform our company from
being product-driven to
customer-driven. It has helped
us understand our customers in
greater detail, enabling us to
optimize our selling resources,
which will result in an
improved ROI.”
- Don Schalk, President and COO, C.H. Briggs Company
replenish high profitability
no relationship low cost to serve low volume
high profitability sustained relationship low cost to serve high volume
low profitability no relationship high cost to serve low volume
low profitability sustained relationship high cost to serve high volume Customer Loyalty (Life)
Customer Buying Power
Customer Profit ability Cost to S er ve OPPORTUNISTIC
CUSTOMERS CUSTOMERSCORE SERVICE DRAIN
CUSTOMERS MARGINAL
CUSTOMERS
Transform your company data to meaningful actionable results using customer
stratification best practice over this 4 day journey
D A T A
M E T H O D O L O G Y
R E S U LT S
Bring Your
CompanY
information
• Financial
• Operational
• Sales
OPPORTUNISTICCUSTOMERS CUSTOMERSCORE
SERVICE DRAIN CUSTOMERS MARGINAL CUSTOMERS A B C D D C B A NET PROFIT
CUSTOMER LIFETIME VALUE (CLV)
4 DAyS
We can help you in more ways that you could possibly imagine. Educational programs can be
developed to fit specific needs of your organization. Programs can be designed and delivered
from 1 - 5 days at the Texas A&M Campus or any preferred location.
ASSESS
DELIVER
DESIGN
MEASURE
DEVELOP
>> Understand challenges and pain points
>> Needs assessment
>> Present at Texas A&M campus or company preferred location
>> Share real-world examples from various companies across multiple lines of trade
>> Determine key action items for attendees
>> Visit business locations
>> Meet with key stakeholders >> Evaluation and feedback >> Program effectiveness follow-up
>> Create content using company specific examples
>> Review material and incorporate feedback with stakeholders >> Determine program duration
T A I L O R A
P R O G R A M F O R
Y O U R F I R M
BENEFITS
>> Tailored program>> Delivered at any location >> Research based material >> Proven methods >> Actionable results
OPEN
ENROLLMENT
PROGRAMS
1
3
2
5
4
Custom Programs
“One size does not fit all”
Gain
Competitive
Advantage
Through
Customized
Education
Distributor Profitability Channel Compensation Sales & Marketing Inventory Management Customer Service Distributor Competitive Advantage Customer Management Growth and Marketshare Distribution Manager Essentials
COMPANY
SPECIFIC
PROGRAMS
OPEN
ENROLLMENT
PROGRAMS
how we can work together?
Pricing
Representative Program Outcomes
We are just an email or phone call away –
http://id.tamu.edu
OPERATION ExPENSE REDUCTION INVENTORY REDUCTION
CUSTOMER SERVICE LEVEL IMPROVEMENT
10-15%
12-35%
3-33%
60-85%
SALES FORCE EFFECTIVENESS CORE CUSTOMER RETENTION GROSS MARGIN INCREASE (BASIS POINTS)
70-95% 120-680
InDUStrIAL DIStrIBUtIon ProgrAM
204 Fermier Hall, 3367 TAMU College Station, TX 77843-3367
979-845-4984 979-845-4980
