According to Lean principles, customer-value-add (CVA) activities should receive greater attention than business-value-add (BVA) and non-value-add (NVA) activities. That’s if your company is truly aiming to apply Lean strategies to reduce waste and make better use of your resources.
CVA represents the excellent business you aspire to capture, stretch and nurture.
BVA represents necessary, though less profitable, business you aspire to understand and enhance.
NVA represents unprofitable business that cannot be improved.
In the pursuit of growth, you must address these and determine the right activities to optimize business based on value.
SPEED is key. In an article for the National Association of Wholesaler-Distributors, Pradip Krishnadevarajan outlines five tactics distributors can apply in sales to marry lean principles to their sales management program:
Curious? Dig deeper into each tactic and learn how to apply them at your organization.
Get the SPEED toolkit to boost value-based selling and reach your sales goals.
What makes customer stratification such an effective strategy? See for yourself.