Advanced Profit Innovation Conference Profit Tuning for Wholesale Distributors Quantum Profit...

Advanced Profit Innovation ConferenceAdvanced Profit Innovation Conference www.APICconference.com

Profit Tuning for Wholesale Distributors

Quantum Profit Management(QPM)

Advanced Techniques for Distribution Companies

• QPM is the most effective way to manage a business for profitability.

• QPM keeps you focused on what really matters.

• QPM helps everyone pull together for real results.

Whale Curves

• You have to understand whale curves if you want to understand the way your business really generates profits.

• You have to understand whale curves if you want to understand your profit potential.

• You have to understand whale curves if you want to know your vulnerabilities (and those of your competitors).

Whale Curves

Key Management Metrics

• GP: Gross Profit• CTS: Cost-to-Serve• NBC: Net Before Compensation

Key Management Metrics

Gross Profit (GP)- Cost-to-Serve (CTS)

= Profit (NBC)

Thinking About Spread

Gross Profit (GP) Drivers

• Sales Volume• Pricing (Gross Margin %)• Product Mix• Customer Mix

Cost-to-Serve (CTS) Drivers

• Transaction Counts– orders– picks (invoice lines)– invoices– shipments

Deltas

• Your basic job is to create a difference (or delta).

• Positive and negative deltas sum to make your performance.

• Managing the deltas gives you direct control over your results.

Granular Measurement

• Don’t draw conclusions from averages – dig into the numbers to find out what they’re made of.

• Look at service models at the granular level.

Best Profit Predictor

• CTS (cost-to-serve) per revenue dollar is the best predictor of profitability.

• CTS% will have a broad variability across the company.

• CTS% vs GM% directly reports profitability.

report from WayPoint Analytics

• CTS (cost-to-serve) per revenue dollar is the best predictor of profitability.

• CTS% will have a broad variability across the company.

• CTS% vs GM% directly reports profitability.• CTS is driven by transaction counts.

(orders / picks / invoices / shipments)

NBC Ratios

• Manage NBC+/NBC- ratios everywhere.• Increase gains, reduce losses.• Where important segments drive losses, work

to change ratios.

NBC+ : NBC-

NBC Incentives

• Recognize and remove current incentives that cause people to drive losses.

• Create incentives that pay when people are contributing to company goals.

NBC Incentives

Summary

• Whale Curves• Key Metrics: GP / CTS / NBC• Deltas• Granular Measurement• Best Profit Predictor• NBC Ratios• NBC Incentives

Advanced Profit Innovation Conference Profit Tuning for Wholesale Distributors Quantum Profit...

Documents

Transcript of Advanced Profit Innovation Conference Profit Tuning for Wholesale Distributors Quantum Profit...

59 Annual Maize Workshop - iimr.icar.gov.in€¦ · released, notified under different types viz., quality protein maize (QPM), sweet corn, popcorn, baby corn, non-QPM maize, elite

Violence Reduction “The Shared Agenda” John Carnochan QPM Detective Chief Superintendent Scottish Violence Reduction Unit.

nDeoIf Ef qpm 1223451ˇˆ˘ - Association for Project ... · nDeoIf Ef qpm Introduction ... the majority of whom are based at the Bristol headquarters ... As one who is keen to keep

Integrating CMMI and TSP/PSP: Using TSP Data to Create ... · 3.1 Example 1: QPM – Meeting the Project Objective for Product Quality 7 3.1.1 Uses of This PPM 8 3.2 Example 2: QPM

Wiltshire - Final Electronic Copy · Brian MOORE QPM, Chief Constable of Wiltshire Police, following the suspension on 12 November 2008 of Graham POWER QPM, Chief Officer of the States

[4303] Finansia Advanced Trailing Stop/Stop Loss Order ... · STOP ORDER 12100 v aa.50 . Cutloss . Taka Prom pmssrv. Exceed profit preserve Cutloze Profit prøssrva . Tligwr . Tligger

Stephen Thomas, QPM Assistant Chief Constable, Operations, British Transport Police (BTP)

Advanced Workplace Mediation Training Sydney · 2014-08-01 · Feedback from Advanced Workplace Mediation Training Participants Sue Milton – Manager, Not-for-Profit “Caryn was

QPM 6.02 REFERENCES, RECORDS AND FORMS MANAGEMENT 1 ...

QPM MISSION OVERVIEW AND U.S. SCIENCE STATUS …

Quacera Dow Jones QPM Radar

QPM and PPLN

Development of QPM Version of DHM117 Maize Hybrid Using .... Surender, et al.pdf · Development of QPM Version of DHM117 Maize Hybrid Using Marker Assisted Selection M. Surender1*,

Base your initial m&a to ppm, qpm, car

Ward Lenz Director of Government Relations, Advanced Energyannualmeeting2015.naseo.org/Data/Sites/7/media/... · 2015-09-14 · About Advanced Energy • Independent, non-profit organization

USING ADVANCED ANALYTICS TO MAXIMIZE RETAIL …4rsystems.com/wp-content/uploads/2017/03/Using-Advanced-Analytics... · USING ADVANCED ANALYTICS TO MAXIMIZE RETAIL PROFIT ... The most

Applying QPM Techniques for effective Test Management of ERP Systems

3 Advanced Non-Profit Social Media Best Practices - ACES International

Treasurer Position for the CAJAL Advanced Neuroscience … position CAJAL... · 2019-08-07 · established international non-profit organization (INPO). About The CAJAL Advanced Neuroscience

Rob Beckley QPM: Are the police equipped to face the demands?