Financial Performance Assessment and Improvement

Do you know which customers are contributing the most to your net profit and which customers are dragging you down? Do you know which customers are driving extra costs into your operation and what those costs are? Do you know which branch, product line, or line of business is most/least profitable? Distribution Strategies shows you how to use the information already in your computer system to identify where you are making and losing money. This analysis identifies customers, products, and services that are contributing to net profit and those that are draining valuable resources. The assessment is based on how you do business and how you service individual customers, not company or industry averages. Then we help you make informed business decisions to improve your bottom line. The presentation “Gross Margin Is Not Enough” discusses the theory behind the concept of using contribution to net profit as a measure of customer value.

Operations Analysis

Many business processes start simple and grow complicated over the years. For example, extra steps or reviews are added to processes to compensate for a situation or problem that occurred, but the steps remain when the situation has passed. In the operations analysis we review operating procedures in each department looking for opportunities to eliminate extra steps and whole processes that do not provide value. Distribution Strategies provides a fresh set of eyes to look at each operation in an unbiased manner and with the experience of having worked with many other distributors dealing with the same issues. The goal is to increase capacity so your company can continue to grow without adding headcount.

Streamline Warehouse Operations

The warehouse is the Achilles Heel of many distributors. Late shipments and shipping errors undermine customer relationships. Lost and inaccurate inventory slows down workers and increases operating costs. Extra labor to double check work is expensive. Even if your warehouse is running well you may be amazed at how much improvement is possible. Distribution Strategies works with you to revamp warehouse processes, inventory placement, and inventory management to improve order shipment completion, on-time delivery, and eliminate shipping errors while reducing labor and inventory requirements.

Software Selection and Implementation

Selecting new software can be a very challenging and frustrating process. The business software you choose has a major impact on your ability to continue to build a profitable business. A successful new software implementation requires a successful software selection process. Distribution Strategies guides you through the process of determining the functionality most needed in your new system. We support you as you compare potential vendors, make the final selection, and negotiate the best terms and most favorable contract. Most software implementations fail due to poor planning and false expectations. Distribution Strategies guides you through the implementation of your new software to help you achieve optimum results while saving time, money, and frustration.