PROFESSIONAL DEVELOPMENT PROGRAMS4 Professional Development Programs Optimizing Distributor...

PROFESSIONAL DEVELOPMENT

PROGRAMS

G A I N C O M P E T I T I V E A DVA N TA G E T H R O U G H E D U C AT I O N

Professional Development Programs2

The Texas A&M AdvantageFor 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 DistributionLeaders

CONTINUING EDUCATION

Enabling Informed/EquippedManagers

UNDERGRADUATE PROGRAMEducating Future

Employees

Training Future Leaders

Knowledge Creation

Knowledge Dissemination

T H O M A S & J O A N R E A D C E N T E R

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.

Secrets to implement key best practices in

3-6 Months

Education

sessions in

13 Countries

Program duration of

1-5 Days

Professional Development Programs 3

Why Connect With Us? We offer....

The Number 1 Industrial Distribution program in the world.

24 InstructorsAverage teaching experience

of at least 16 years

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 training through our workshops every year

Education

sessions in

13 Countries

Program duration of

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 ATTENDStrategic 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 FRAMEWORKLinking Business Processes and Shareholder Value

STORE

SELL

SHIP

SUPPLYCHAIN

PLANNING

SUPPORTSERVICES

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


Revenue Growth

Gross Margin

BUSINES

S

PROCESSES

SHAREHOLDER

VALUE

http://supplychain.tamu.edu© 2008 Supply Chain Systems Laboratory, Texas A&M University

SHAREHOLDER VALUE

GROWTH PROFITABILITY ASSETEFFICIENCY

CASHFLOW

BUSINESSPROCESSES

FINANCIALDRIVERS

SOURCE STOCK STORE SELL SHIP

SUPPLY CHAIN PLANNING

SUPPORT SERVICES

Days Sales Outstanding

Gross Margin


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 ReceivingProduct Put-Away

Product PlacementLocation TypeLocation IdentificationProduct Storage

Cycle Counting

Sales Force StratificationMapping Customers & Sales Force

Customer StratificationCost To Serve AssessmentNew Customer Identification

Pricing Optimization

Voice Of CustomerNew Product Introduction Market Selection & Target StrategyCustomer Portfolio Management

Fleet Capacity ManagementFleet Cost Assessment

Routing OptimizationLoading Optimization

Carrier Selection & Performance

Product PickingOrder Delivery

New Facility Location

Network OptimizationResource & Asset Alignment(Supplier - Inventory - Customer)Service Level Optimization

System Integration

Credit Management

Training & Development

Recruitment & RetentionCompensation 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


Working Capital

Inventory Turnover

EBITDA

Revenue Growth

Working Capital


Account Receivable Turnover

EBITDA

Revenue Growth

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

Supplier SelectionSupplier PerformanceSupplier StratificationSupplier Relationship

Inventory Stratification

What to Forecast?Demand ClassificationForecasting 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


Revenue Growth

EBITDA


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 OUTLINEPart 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 ATTENDSales 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)




18.4%14.9%

16.5%

36.3%

24.4%21.8% 19.4%

48.6%

BEFOREAFTER

1.5 DAYS


Sales and Marketing Optimization Developing Competitive Value Propositions in Distribution

Strategic Planning Process Process Metrics Financial Elements Financial Metrics

SALES AND MARKETING FRAMEWORKLinking Sales and Marketing Processes to Shareholder Value & Customer Service

SHAREHOLDER

VALUE

CUSTOMER SERVICE

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)


Recruiting and hiring Cost

Revenue

Operating expenses (cost-to-serve) Training expenses


Revenue Growth

EBITDA

Days Chargeback Outstanding


Market Share

An Alliance of the NAW Institute & Texas A&M University

COMPANYOBJECTIVES

SALES FORCEPRIORITIES

CUSTOMERNEEDS

Value

Pro

posit

ion Sales Process

Sales Management

IdentifyLeads

InterviewPotentialCustomer

DiscoverPotential

Presentto Customer

DesignSolution

Follow-up & Close the Sale

DeliverProducts &

Services

Post-SalesSupport

Negotiatewith Customer

VALUE POSITIONING

SALES AND MARKETING STRATEGYCross Functional Team

MARKET SEGMENTATION

MARKETSEGMENTATION

1

2

3

TARGETMARKET SELECTION

VALUEPOSITIONING

SUPPLY CHAINPLANNING

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

SUPPORTSERVICES

COMPANY

VISI

N

&

MISSION

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 customersdo 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

COMPANYOBJECTIVES

(Shareholder Value Goals)

COMPANYSTRATEGY

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

SELLSUPPORTSERVICES

STORE, SHIP &SUPPLY CHAIN

PLANNING

VALUEPROPOSITION

CREATE VALUE PROPOSITION DELIVER VALUE PROPOSITION SUSTAIN VALUE PROPOSITIONCOMMUNICATE VALUE PROPOSITION

DiversificationProduct &Services

Development

MarketDevelopment

MarketPenetration

BUSINESSDEVELOPMENT

CATALOG &LINE CARDS

WEBSITE DIRECTMAIL

SOCIAL MEDIA& PR

EMAILCAMPAIGN

TRADESHOW

ADVERTISING(ONLINE &OFFLINE)

CUSTOMERSERVICE

REP

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/crdbphttp://id.tamu.edu

Created by Senthil Gunasekaran, Pradip Krishnadevarajan and Barry Lawrence

www.nawpubs.org

Revenue Growth

Market Share

EBITDA"Gross Margin


EBITDA


Revenue Growth

Market Share

EBITDA"Gross Margin


EBITDA


GROWTH

PROFITABILITYASSET

EFFICIENCY

SELL

FUNCTIONALSTRATEGY

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

ClusteredMicro Segments

MicroSegments

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 ATTENDSales & 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

DISTRIBUTION GROWTH FRAMEWORK

GROWTH

PROFITABLE GROWTH

SUSTAINABLE PROFITABLEGROWTH

COUNCIL F R RESEARCHON DISTRIBUTOR BEST PRACTICESAn Alliance of the NAW Institute & Texas A&M University

CRDBP

COMPANY

VISI

N

&

MISSION

www.naw.org/crdbp http://supplychain.tamu.edu

© 2011 Global Supply Chain Laboratory

www.nawpubs.org

Strategic Planning Growth Dimensions Financial DriversGrowth Processes Metrics

WHY SHOULDCUSTOMERS

DO BUSINESSWITH US?

5

HOW DO WEGET THERE?

4

WHERE DO WEWANT TO BE?

3

WHEREARE WE?

2

WHAT ISTHE MARKET?

1

CAPABILITY

RISK MANAGEMENT

GrowthStrategy

GrowthDrivers

GrowthMechanism

Customers Human andIT Capital

Suppliers Shareholders

GROWTHFORCES

SUSTAINGROWTH

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

GROWTH

PROFITABILITY

CASH FLOW

ASSETEFFICIENCY

>> 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)

SHAREHOLDER

VALUE

CUSTOMER SERVICE

GROWTH

PROFITABILITYASSET

EFFICIENCY

CASH FLOW

OpportunityAssumptions

RetentionStrategy

CapabilityAssumptions

OPPORTUNITY

GENERATING GROWTH MANAGING GROWTH SUSTAINING GROWTH1 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 ATTENDC-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 ATTENDC-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

INNOVATIONMARKET ACCESS

PROCESS

TECHNOLOGY

INFORMATION

KNOWLEDGE

HUMANFINANCIAL

RELATIONSHIP

POLICY

SUPPLY CHAIN

ORGANIZATIONAL

1.5 DAYS

FINANCIAL PERFORMANCE

SU

PP

LY C

HA

IN P

ER

FO

RM

AN

CE

SERVICE DRIVERS

VALUE DRAINERS

VALUE DRIVERS

VOLUME DRIVERS

Strate

gic Ali

gnment


The New Science of Customer Service Building a Sustainable Competitive Advantage

PROGRAM OUTLINEDAY 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 ATTENDCustomer 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 GAPSERVICE DESIGN

& STANDARDS GAP

2 DAYS

accurate

honest

innovative

responsive

timely

enthusiastic

trustworthy

consistent

transparent


Executive Session on Distributor Competitive Advantage In Pursuit of Competitiveness

WHO SHOULD ATTENDExecutive 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

DAY

2

DAY

3

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 OUTLINEFinancial 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 ATTENDBranch 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 OUTLINEMethods>> 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 ATTENDInventory Planners / BuyersInventory ManagersPurchasing ProfessionalsSupplier Relationship ManagersCategory / 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 L T 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 TimeDemand During Lead Time Safety Stock

ForecastingFill Rate

Reorder Point

Replenish

5 DAYS


Intensive Customer Stratification Best Practices for Boosting Profitability

PROGRAM OUTLINEPart 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 ATTENDSales 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 profitabilityNo relationshipLow cost to serveLow volume

High profitabilitySustained relationshipLow cost to serveHigh volume

Low profitabilityNo relationshipHigh cost to serveLow volume

Low profitabilitySustained relationshipHigh cost to serveHigh volume

Customer Loyalty (Life)

Customer Buying Power

Cus

tom

er P

rofi

tabi

lity C

ost to Serve

OPPORTUNISTIC CUSTOMERS

CORE CUSTOMERS

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 L T S

BRING YOUR COMPANY INFORMATION

• Financial• Operational• Sales

OPPORTUNISTIC CUSTOMERS

CORE CUSTOMERS

SERVICE DRAIN CUSTOMERS

MARGINAL CUSTOMERS

A

B

C

DD C B A

NET

PRO

FIT

CUSTOMER LIFETIME VALUE (CLV)

4 DAYS


We can help you in more ways than 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

OPENENROLLMENT PROGRAMS

1

3

2

5

4

Custom Programs “One size does not fit all”

Gain CompetitiveAdvantage

Through Customized Education

OUR PROCESS CONSISTS OF:


Distributor Profitability

Channel Compensation

Sales & Marketing

Inventory Management

Customer Service

Distributor Competitive Advantage

CustomerManagement

Growth and Marketshare

Distribution Manager Essentials

COMPANYSPECIFIC

PROGRAMS

OPENENROLLMENT PROGRAMS

How can we 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

PEOPLE PROCESS TECHNOLOGY METRICS

INDUSTRIAL DISTRIBUTION PROGRAM204 Fermier Hall, 3367 TAMU

College Station, TX 77843-3367 PH 979-845-4984 FX 979-845-4980

WEB id.tamu.edu

G A I N C O M P E T I T I V E A DVA N TA G E T H R O U G H E D U C AT I O N

PROFESSIONAL DEVELOPMENT PROGRAMS4 Professional Development Programs Optimizing Distributor...

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