Bruce Merrifield, President — Merrifield Consulting
•profit analytics •distribution management best practices •profit strategy •supply chain issues •Randy MacLean •cost to serve analytics •wholesale distribution •Bruce Merrifield •inventory management •optimizing inventory
Wednesday, May 17, 2017—Why You Should Be Optimizing Inventory
Listen in as Randy MacLean and Bruce Merrifield, both of WayPoint Analytics, discuss a novel approach to optimizing inventory and increasing profit.
Inventory management is an often-overlooked profit opportunity. Randy and Bruce explain why it's important to optimize inventory in the same way you optimize personnel and other resources toward the best profit opportunities.
The purpose of having inventory is to provide service to the customer. This is measured by fill rates, and from a truly financial dimension fill rates have diminishing returns. In other words, adding more inventory dollars increases your fill rate, but at a certain point, usually about 92%, you will start to experience diminishing returns on your inventory investment.
One of the problems with this high-level approach is that not all SKUs are equal. Popular SKUs deserve high fill rates. Very profitable SKUs deserve high fill rates. Using the WayPoint Popularity vs. Profitability Report, you can beef up the most popular and profitable items for a particular niche.
The idea is not to simply raise inventory on a just-in-case basis. Be smart, and instead narrow the focus to the products that actually affect the bottom line, based on the most profitable customers, most of the time.
The benefit of this is that you can provide one stop shopping to your customers. You can tell them you have everything they need and it's in stock. No partial fulfillment. No delays.
With this focused approach you now have an answer for the numbers guys, who think you are just spending more money on inventory and will want to put the brakes on at a 92% fill rate. A look at the other dimensions reveals you are saving money on personnel costs, infrastructure costs, and delivery costs. You are increasing customer satisfaction and doing the most important marketing you can: Being reliable based on your actions, not an ad.
It's time to ditch one-dimensional financial thinking, own the sales for a niche with super customer service, and create higher profits.
For more information about Bruce Merrifield, visit: www.merrifieldact2.com
Randy MacLean explains the differences in business intelligence systems, and how to know what you're getting with each kind.
Steve Epner and Randy MacLean discuss topics from Steve's book. In this video: How to Innovate.
In-house analytics initiatives are prone to delivering ineffective information or to outright failure. Here's why.
2020 Q4 is the time companies can take great leaps in market position, actively shaping their competitive landscape for years to come.
The top business know not only how to innovate, but where to spot opportunities where innovation will bring the greatest results.
See how implementing LIPA can give you the bandwidth to be more accommodating to your customers with analytics-based service excellence
Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss different levels of cost analysis, and why deeper analytics can bring much greater benefits.
Customer triage is key to profits in Distribution. Randy MacLean share the key elements of costing required to help you assign the right service level.
Companies are developing more and more sophisticated approaches to sales compensation and here Bruce Merrifield and Randy MacLean examine the trends.
Use profit analytics to help drive radical profit gains by balancing volume, margin and service costs for every account, doubling and tripling territory profits
Managing Product Line Profits shows how operations can have a significant impact on net profit and examines Peak Internal Profit, accumulated profit and more
Discussion about a 9-step process aimed at transforming a transactional relationship with an account into a partnership.
Randy MacLean and Bruce Merrifield of WayPoint Analytics discuss profit value-based customer segmentation.
A discussion of the benefits of segmentation and how this approach can help distributors achieve far greater levels of profitability.
Top companies like Amazon can leverage big data to predict consumer buying habits. Bruce Merrifield discusses how you can do this too!
Most distributors have naturally occurring, high gross margin percentage accounts and high gross margin percentage (small dollar pick) SKUs.
How to identify and protect the accounts at the core of profits.
Randy MacLean and Bruce Merrifield sit down for a talk about the issues and opportunities, tactics and strategies for increasing profit performance.
Continuance of the Enterprise Account Selling Model video series. Refers to a preceding video. Drawn from Bruce's presentation at APIC on March 1, 2016.
A continuation of the discussion between Bruce Merrifield and Randy MacLean over Bruce's Enterprise Account Selling Model (part 2).
Bruce Merrifield and Randy MacLean discuss Bruce's Enterprise Account Selling Model, as presented at APIC on March 1, 2016.
Using the negotiation process to achieve CTS savings, allowing you to offer your customers lower prices while leaving the table with a larger profit.
Customer whale curves are a great opportunity to view the overall picture of your customer profitability and apply appropriate sales models to each
Bruce Merrifield discusses the Wheel of Learning and how this simple tool can catapult you forward with innovative thinking.
This video by Bruce Merrifield and Randy MacLean describes why you can't rely solely on gross margin to determine profitability.
An in-depth look at some historical limitations to sales compensation, and why those factors no longer apply with the availability of LIPA.
What to do with your top accounts.
A fixation on gross margin – without looking at cost-to-serve (CTS) – has blinded countless distributors and limited their ability to achieve profitability.
Learn how this distributor was able to massively ramp up its profitability even as it lost many of its customers.
Learn why distributors can't simply rely on gross margin when determining whether a sale will add to the bottom line.
Randy MacLean talks about the emergence of a new sales strategy.
A discussion on how little extras can sometimes add up to a lot of infrastructure cost in wholesale distribution companies.
Randy MacLean discusses key profitability metrics for QPM.
In this video, Bruce Merrifield turns the tables on Waypoint President Randy MacLean, and asks Randy to strategize on how to beat the competition.
Randy discusses the benefits of the extraordinarily valuable High Volume Account Report.
A discussion of the perils of a cookie cutter approach when it comes to sales and service in the wholesale distribution industry.
Bruce Merrifield of WayPoint Analytics teaches the importance of customer segmentation and the insights it can offer your distribution company.
It's not necessary to compete with AmazonSupply on pricing when you've got your ordering and delivery systems, fill rates and customer service at a high level.
Randy MacLean introduces the core principles of QPM and illustrates how it's the most effective way to run a business.
Have you had trouble conveying the importance of CTS to your team? Learn how this course provides an affordable and convenient educational solution.
What is the value of the APIC conference for a business, and why does it stand out above other education programs?
Getting Results with a Customer Audit
Bruce Merrifield and Randy MacLean discuss profit strategies for wholesale distributors that will raise their cost-to-serve and profits.
Webinar: Quantum Sales Compensation Plan Part 2
Webinar: Quantum Sales Compensation: Designing Your Plan
Webinar: Quantum Sales Compensation for the Wholesale Distribution Industry: Launching Your Plan