Optimizing Distributor Profitability
Reinventing Distributor Business ModelA journey of a thousand miles must begin with a single step. — LAO-TZU, Chinese philosopher
Staying relevant to your customers can be a long, arduous journey with many bumps and potholes in the road. Forward thinking companies are able to short circuit this journey by proactively reinventing / adapting their business models in order to stay ahead of competitors and remain indispensable to customers. In our two decades of work with hundreds of distributors, we’ve seen that successful reinvention can happen only when you, 1) streamline your business processes and link it to financial outcomes to create ‘Alignment’, 2) incorporate customer and supplier inputs to your processes to bring Relevance, and 3) focus on efficiently building your Capability to support your stakeholders (customers, suppliers, employees, shareholders, etc.). Doing this will set your company down a shorter path to create a Customer Experience driven organization. In our Reinventing Distributor Business Model ACTshop, we offer you the critical resources and guidance you need to reinvent your business model:
- A five-step methodology with clear, “how-to” ideas and tools
- 123 detailed exhibits that walk you through the key processes
- 50 action steps that you can implement today and over time
- A Distributor Profitability Framework that helps you make the “eureka” connection between business processes and financial drivers
Your path to reinventing your distribution business model will be broken down to 2 key zones.
- Zone 1 will focus on the high level concepts and framework (i.e. what key steps are required?). The distributor profitability framework will provide a blueprint for the key “7S” functional areas that represent the foundation of every distributor. The framework will help you think uniformly and coherently about key processes and their link to profitability. This zone will expose you to a five-step methodology and corresponding tools to optimize shareholder value.
- Zone 2 is all about “blueprint in action” (i.e. how do we get there?). For each of the 7S functions, you will learn how answer essential questions – Where do you stand now? How do you currently link processes to profitability and how might that change? How far can you go with reinvention? How do you get there? This zone will also highlight the challenges associated with identifying and mobilizing the key resources you need to implement best practices. Further, we will offer real-world examples of best practice implementations to show how realistic and achievable the benefits are.
The workshop will conclude with a roadmap listing the ‘plan of action’ and provide suggestions for how to implement best practices immediately.
Adapting to changing customer needs and proactively reinventing your business model is attainable only when you embrace these learnings:
- The potential for improving profitability exists
- Process and financial performance should be linked and measured to assess reinvention potential
- A one-to-one connection should always be established between business processes and shareholder value
- This connection can and should be quantified and prioritized
- Best practices are available and can be achieved
- Consistent education will enable distributors to realize their full profitability potential.
- The potential to double EBITDA (operating profit) and triple your RONA (Asset efficiency) exists if your People-Process-Performance is optimized
This is not your traditional training workshop, listening to an 8-hour monologue. We take a different approach and prefer to call each session an ACTshop. We take an innovative, agile approach:
Why are our ACTshops so successful? Peer-driven, blended learning is the key. Research has shown that people retain more, apply more, and experiment more when opportunities are aligned for them to learn, apply, follow-up, and re-learn. Our ACTshops are designed to follow this sequence but in a more fun-filled, inspiring way.
Our ACTshop consists of, but not limited to:
- Pre-course preparation
- In-session business assessment tools
- Post-course follow-up
- Capstone projects
- People-process-performance alignment
- Best practice resources
We are impressed with the material and its potential impact on our profitability. Truly information and education for the times.