By Steve Epner
These are difficult and unprecedented economic times. For the vast majority of businesses, the economic downturn will be painful, but not fatal. Success will depend on being able to respond proactively to the many regulatory and market changes that are coming. It will require the ability to take successful practices from the past and adjust them for new realities. The successful distributor of tomorrow will need to build on what has worked, be willing to shed things that no longer work, and be open to new ways of doing everything.
The good news is that there are a number of techniques that a distributor can use to increase productivity and lay the foundation for a more profitable future. These "fixes" are not untested or unproved. Some are from other industries and some have been around but unused. In high growth times, many opportunities for efficiency may have been delayed or overlooked as not necessary or of a high enough priority to allocate resources. Now the world has changed and it is a good time to consider how some of these capabilities may be used to improve operations.
Consider the current downturn as an opportunity to change the way things are done. Customers and suppliers are all open to new ideas and are willing to try new things. The leaders in each industry will take advantage of the environment to modify what is being done, to streamline operations, and to establish new realities that will have long term effects.
It is a good time to think about redirecting investment of time and effort to create a sustainable future. The ownership of our companies must lead the way to make sure management and employees do the right things. In the following pages, trends and the status quo will be examined. Processes will be questioned and replacements suggested.
A realistic and honest appraisal of each organization’s strengths, weaknesses, opportunities and threats is required. Then direct and deliberate steps are needed to take advantage of technologies and techniques that will propel the operation into the future. That is the secret for surviving the current downturn and laying the foundation for future success.
To read more click to this website: http://www.software4distributors.com/media/whitepapers/BSWCWhitepaper_Six_Strategies_for_Improving_Operations_and_Profit.pdf
Showing posts with label Improve Operations. Show all posts
Showing posts with label Improve Operations. Show all posts
Tuesday, March 17, 2009
Wednesday, March 4, 2009
Increasing Industrial Distribution Profitability by Segmenting Customers, Suppliers and Products
By Steve Epner
In the current tough economic times, Industrial Distributors must use every advantage to improve operations, reduce costs and ultimately increase returns for stakeholders. Organizations that have access to and are willing to make better use of specific ERP applications can integrate the concepts of metrics and segmentation into the business for outsized results.
An important element in management theory is the simple concept:”If you cannot measure it, you cannot manage it.” By examining how to make information more visible to the distributor, it is possible to increase their ability to take charge of and manage their environment.
Once the metrics are available, then the use of Segmentation becomes a viable option to better manage the assets of an organization. Using measurements of “value” and profitability” it is possible to divide groups (customers, suppliers, and products) into subcategories which can be individually managed to provide the greatest benefit to the operation. Industrial distributors can use this concept to provide an objective basis for increasing the return on all assets.
In the current tough economic times, Industrial Distributors must use every advantage to improve operations, reduce costs and ultimately increase returns for stakeholders. Organizations that have access to and are willing to make better use of specific ERP applications can integrate the concepts of metrics and segmentation into the business for outsized results.
An important element in management theory is the simple concept:”If you cannot measure it, you cannot manage it.” By examining how to make information more visible to the distributor, it is possible to increase their ability to take charge of and manage their environment.
Once the metrics are available, then the use of Segmentation becomes a viable option to better manage the assets of an organization. Using measurements of “value” and profitability” it is possible to divide groups (customers, suppliers, and products) into subcategories which can be individually managed to provide the greatest benefit to the operation. Industrial distributors can use this concept to provide an objective basis for increasing the return on all assets.
For many Industrial distributors, the greatest hurdle will be learning how to develop, track and report the information hidden in their automation systems. Information collected and stored within a modern and properly configured ERP system combined with applications (such as Business Intelligence) can be used to fine tune pricing, inventory, purchasing and customer service levels based on objective measures of value and contribution to profitability.
Companies who make more effective operational decisions based on metrics and segmentation can outperform the competition in all aspects of business.
To read more click on this website: http://www.software4distributors.com/media/whitepapers/BSWCWhitepaper_Increasing_Industrial_Distribution_Profitability.pdf
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