Data-driven Solutions to Boost Distributor Profitability
We help distributors drive profitable growth through data analytics.
Not all customers are created equal.
Not all products require the same service and inventory levels.
Not all profitability initiatives deliver results.
profitBI offers a range of solutions that help better decision-making in day-to-day business.
Implementation brings immediate improvement to the distributor’s gross margin, as well as a reduction of operating expenses and working capital.
Not sure where to start?
Learning more about your customers is always a good idea.
profitBI Customer Segmentation uses cutting-edge research to provide a fresh view of your distribution business.
Instead of having a single business plan, you will now have four tailor-made strategies, for each one of your customer segments.
Our core solutions:
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profitBI Customer Segmentation
Find out which customers are (not so) profitable.
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profitBI Inventory Management
Decrease inventory while improving service level.
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profitBI Pricing Optimization
Increase prices without losing customers.
profitBI Inventory Optimization
Not all products are created equal (and they shouldn’t be managed as equal!).
However, in order to avoid stockouts, distributors will often carry too much inventory on all items. The problem with this approach is that C and D items typically account for 40% of the inventory.
The underlying issue is that most inventory models are too complex and difficult to understand. That makes it nearly impossible to actively manage several things at once – price changes, lead times, minimum order quantities, safety stock levels, reorder points, and so on.
profitBI Inventory Optimization offers a systematic, easy-to-comprehend model that can be rolled out, taught, and implemented company-wide to dramatically improve working capital and drive profitable growth.
The model segments all items based on profitability, volume, velocity, and demand stability. The findings are then used to reduce excess inventory and improve forecasting and replenishment.
Not all customers are equal, nor do they deserve the same treatment.
While distributors need to protect a small number of customers at any cost, they should increase prices and limit services for the others.
However, most distributors have a difficult time convincing their sales force to act on this wisdom. The reason is simple - most customer profitability models are complex. This makes it difficult for the average salesperson to understand those models, let alone act upon them when working with customers.
profitBI Customer Segmentation offers a systematic, easy-to-implement, customer profitability model that any salesperson can understand, embrace, and implement.
The model takes into account 15 customer behavioral factors which are derived from the distributor’s ERP. These factors are then combined to group customers into four segments and develop advanced dashboards.
profitBI Customer Segmentation
The margins in the wholesale distribution industry are shrinking and this trend will not end any time soon.
Distributors have responded by cutting costs and optimizing processes. However, if you keep doing more with less, you will soon be doing everything with nothing.
That is why distributors need to get creative when it comes to pricing methods.
However, pricing decisions are typically left to individual salespeople. This kind of flexibility not only leads to inconsistency and increased complexity, but also to margin leakage and lost profits.
profitBI Pricing Optimization builds on our customer and inventory segmentation models. It helps distributors implement pricing processes that they can manage consistently and profitably.
profitBI Pricing Optimization
Contact
Feel free to contact us with any questions.
Email
info@profitbi.eu
Phone
+385 98 983 4923