物流管理
Arthur
Andersen
3 物流管理
3 What is AA Doing in the Marketplace?
3 Trends/Hot Buttons in Wholesale Distribution
3 Service Line Examples
Customer Satisfaction
Channel Marketing
3 Wholesale Distribution Industry Program
目 录
The
Wholesale
Distribution
Industry
The Classic Channel
Product
Service
Information
Information
$
Manufacturer
Wholesaler- Distributor
Customer
Many Forces Are Changing the Channel
Manufacturer
Wholesaler- Distributor
Customer
Alternate
Channel
Formats
Business Climate
Business Climate
Channel Formats
Manufacturer
Service Providers
“Door to Door”
Third Party Influencers
Catalog & Technology- Aided
Retailer Based
Buyer Initiated
Point of Consumption Merchandising
Manufacturer Based
Wholesaler-
Distributor
Customer
Customer Market Segments Continue to Fragment Requiring Different Suppliers
High
Low
Low
High
Value-Added Service Needs of the Customer/Supplier
Need:
- Customer quality &unique product/service concerns
Example:
- Specialty distribution
- Focus on one of product, service, customer, location
Need:
- Small orders
- Low cost
Example:
- Direct mail-catalog
- Warehouse club
Need:
- Large OEM contracts
Example:
- Manufacturer-direct
Need:
- Outsourcing
- Integrated Supply
Example:
- Large-distributor converter
Traditional
Wholesaler-
Distributor’s
Customers
Industry/Product Life Cycle Concept
INTRODUCTION
GROWTH
MATURITY
DECLINE
Wholesaler- Distributor
Other Channels
Manufacturer Support
Extension of the Life Cycle Concept: Reformation and Transformation
INTRODUCTION
GROWTH
MATURITY
DECLINE
INTRODUCTION
GROWTH
MATURITY
DECLINE
Transformation
Reformation
Reformation - Optimizing Core Competencies
Focus on reducing costs
Focus on providing basic services
Retention and penetration of customers
Increased outsourcing (delivery; drop-shipments direct from suppliers)
Shift to inside salesforce
Transformation - Reinventing the Business
Focus on revenue growth
Increased importance of innovative value-added services
Strategic alliances for integrated supply
Emphasis on reinventing the business and redeploying the workforce
Reengineer the salesforce
Trends Continuing From 1992 Study
W/Ds do not agree with their suppliers on key issues
Margins and profitability continue to be pressured
Alternate channel formats are here to stay
Mergers and acquisitions continue at a rapid rate
W/Ds are improving productivity
Attracting and retaining strong management talent remains a challenge
Emerging Issues
Large companies still growing; small/medium companies turn to buying groups
Marketing alliances emerge
Integrated supply programs flourish
Some segments shift from supply “push” to demand “pull” in
Alternate channels shake out
What is
AA
Doing
in the
Marketplace?
Questions to Answer
How are you using the FTFOC study?
Hot issues/activities for clients and targets
What does the Industry Program provide that is value-added/non-value added?
What further support do you need from the Industry Program?
F A C I N G
the
F O R C E S
of
C H A N G E
N A W
DREF
Transforming
Your Business With
Best Practices
Objectives of the Study
To provide a compilation of critical trends for management to use in strategic planning efforts
To provide insights into how leading-edge companies are preparing to face these critical trends
The Shift From Departmental to Process Mindset
Understand Markets & Customers
Develop Vision & Strategy
Selling & Customer Service
Obtain Materials & Supplies
Mng. Inventories & Deliveries
Develop Human Resources
Sales & Marketing
Purchasing
Warehousing
Delivery
Administration
Sales & Marketing
Purchasing
Warehousing
Delivery
Administration
Past
Present
Future?
Best Practices Matrix
Quadrant IV
“Expected”
Quadrant III
“Proven”
Quadrant I
“Innovative”
Quadrant II
“Differentiated”
High
Low
High
Low
GAP
USAGE
Degree to which the practice is employed
Degree to which the practice provides differentiated profitability or “gap” over non-users
Understanding Markets & Customers
Key Messages
Wholesaler-distributors must create and use formal methods to gain customer feedback and improve communication.
Formally and continuously measure customer satisfaction.
Segment markets and customers, and design or adjust business processes, based on a balance of price and value.
Take advantage of inherent strengths to deliver the best value for the price.
W/Ds gauge customer’s satisfaction
Agree/Strongly Agree
50%
45%
27%
17%
21%
18%
W/Ds Do Not Communicate Well With Their Customers
W/D
S
Communication is good
W/Ds understand customer’s expectations
Customers Focus on Best Value and Lowest Cost –Complete & Reliable Deliveries are Assumed
W/D
High ROTA
S
Today 2000 Today 2000 Today 2000
Completeness & reliability of deliveries 1 1 2 2 1 1
Competent outside salesperson 2 6 5 8 5 7
Best value for the price 3 2 1 1 2 2
Competent inside salesperson 4 3 6 6 7 6
Quality of product 5 5 3 3 3 3
Lowest total delivered cost 6 4 7 5 12 10
Frequency & speed of delivery 7 7 4 4 4 4
W/Ds need to understand their cost
Sophisticated management information, and its use, will be key to success in future
W/Ds have information to decide about profitable customers, products, and services
Agree/Strongly Agree
96%
96%
98%
97%
Better Information is Needed to Make Better Business Decisions
66%
54%
W/D
S
Quadrant IV
“Expected”
Quadrant III
“Proven”
Quadrant I
“Innovative”
High
Low
High
USAGE
Degree to which the practice is employed
Track satisfaction using informal feedback
Quadrant II
“Differentiated”
Include customer satisfaction-related measures in employee reviews
Track customer satisfaction with internal operating statistics
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
Low
USAGE
Degree to which the practice is employed
Track satisfaction using informal feedback
Track customer satisfaction with formal market research -- annual satisfaction surveys, performance relative to competitors, etc.
Track customer satisfaction using external sources other than customers
Quadrant I
“Innovative”
Enhancing Company Value -- AA Services
Market Needs Assessment
Competitive Profiling/Benchmarking
Market Entry Strategies
Channel Effectiveness
Pricing Structures
Market and Sales Organizational Structure
Advertising Effectiveness
Understanding
Markets &
Customers
Developing Vision & Strategy
Key Messages
Wholesaler-distributors must use formally gathered customer feedback and other external information to drive a formal strategic planning process.
Use formal strategic planning to ensure consistent and reliable customer service.
Make vision and strategy the CEO’s primary job.
Reengineer business processes to meet customer needs.
Improve financial performance by simultaneously increasing revenue and controlling cost.
Wholesaler-distributors are doing strategic planning to enhance performance
Agree/Strongly Agree
40%
16%
S
W/D
W/Ds and Suppliers Disagree On Degree of Planning Done
ROI Strategies Reflect Both Reformation & Transformation
W/D
S
Today 2000 Today 2000
Grow sales 30 30 26 24
Increase gross margin 21 20 15 14
Decrease operating costs 18 18 20 22
Improve purchasing practices 17 16 16 18
Improve asset turnover 11 12 15 15
Change capital structure 3 4 8 7
Quadrant IV
“Expected”
High
Low
High
Low
USAGE
Degree to which the practice is employed
Quadrant III
“Proven”
Benchmark against competitors
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
USAGE
Degree to which the practice is employed
Quadrant II
“Differentiated”
Create a small family of measures addressing Cost, Quality and Time across organization, processes & people
Use activity-based budgeting and costing to link costs to key drives
Have long-range strategic plan
Benchmark against competitors
Enhancing Company Value -- AA Services
Strategic Business Planning
Strategic Screen
Shareholder Value Analysis
Performance Management Decision Support
Activity Based Management
Portfolio Analysis
Acquisition/Divestititure Support
Developing
Vision &
Strategy
Enhancing Company Value -- AA Services
Capital Sourcing
Valuation Services
Balance Sheet Restructuring
Debt Refinancing
Financial & Business Audits
Contract Audit Services
Business Risk Control Services
Litigation Consulting
Developing
Vision &
Strategy
Selling and Customer Service
Key Messages
Wholesaler-distributors must redesign their sales efforts and other processes to achieve seamless customer service.
Redesign the role of the salesforce.
Place customer service at center stage.
Consider integrated supply arrangements as a way to “lock in” the customer.
Make pricing structure less complex and more effective.
The Customer Service Framework
“Consistent & Reliable Service”
“Management of Problems & Exceptions”
“Market Differentiation”
Reliability
Resilience
Value-Added
Goal: To enhance the role of outside sales
Salesforce Continues to Shift to Inside Sales
This Study
Last Study
60%
40%
20%
0%
Today 2000 Today 2000
46%
54%
57%
43%
39%
61%
51%
49%
Inside Sales Outside Sales
Inside Sales Is Becoming More Proactive and Less Administrative
Today 2000 Today 2000
Order taking & processing 62 48 15 10
Soliciting orders from existing 12 18 35 30 customers
Soliciting orders from new 5 11 12 19 customers
Promoting new or other products 5 8 10 15
Administrative 11 7 7 5
Training 5 7 5 8
Travel and waiting N/A N/A 16 13
Inside Sales
Outside Sales
Quadrant IV
“Expected”
High
Low
High
Low
USAGE
Degree to which the practice is employed
Provide one primary contact point for each type of customer
Quadrant III
“Proven”
Responding to Inquiries & Processing the Order
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
High
Low
USAGE
Degree to which the practice is employed
Quadrant II
“Differentiated”
Provide one primary contact point for each type of customer
Measure average wait time “on hold” for customers (., in minutes)
Integrate telephone response technology and information systems
Responding to Inquiries & Processing the Order
Quadrant IV
“Expected”
High
Low
High
Low
USAGE
Degree to which the practice is employed
Quadrant III
“Proven”
Offer customers easily-understood, easy-to-use, flexible yet standardized ways to submit claims
Provide customers with a single contact empowered to resolve the claim
After-Sales Service
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
USAGE
Degree to which the practice is employed
Offer customers easily-understood, easy-to-use, flexible yet standardized ways to submit claims
Provide customers with a single contact empowered to resolve the claim
Quadrant II
“Differentiated”
Implement complaint satisfaction surveys to assess the customer’s level of satisfaction with the complaint resolution process
After-Sales Service
Obtaining
Materials & Supplies
Key Messages
Wholesaler-distributors must identify their “strategic suppliers” and treat them as customers.
Understand supplier needs and wants are fragmenting.
Develop formal methods for determining supplier expectations.
Quantitatively prove to suppliers the value added by wholesaler-distributors
Formally evaluate vendors to determine the most effective and productive partners.
Promotional Spending Will Shift to Performance Criteria Programs
W/D
S
Today 2000 Today 2000
Incentives based on dollars spent 55 45 49 36 on purchase
Incentives based on volume (units) 22 19 27 21 of purchase
Performance criteria programs 20 32 19 37
Other 3 4 5 6
Better Communication Is Needed to Strengthen Relationships Between W/Ds and Suppliers
95%
88%
23%
54%
60%
41%
62%
60%
21%
31%
Relationship between manufacturers and W/Ds need to be strengthened
Most manufacturers have a strong sense of loyalty to W/Ds that represent them
Manufacturers view W/Ds participation in the marketing channel as a “necessary evil”
Partnerships with suppliers don’t exist today
Communication between W/Ds and suppliers is quite good
W/D
S
Agree/Strongly Agree
Wholesaler-Distributors’ Value-added is Being Questioned
Most manufacturers feel they need distributors’ assistance and value-added services to perform marketing functions necessary to sell their products
Distributors are doing a good job performing marketing functions for manufacturers
Manufacturers have been relying less on W/Ds to perform marketing functions over the past 5 years
Agree/Strongly Agree
73%
80%
S
W/D
45%
7%
47%
68%
The cost and value of the marketing functions W/Ds perform are not clearly understood by manufacturers
Manufacturers generally feel distributors’ gross margins on their products are more than adequate
By year 2000, W/Ds will play a larger role than today performing marketing functions for manufacturers
Agree/Strongly Agree
91%
71%
S
W/D
92%
75%
79%
58%
Suppliers Don’t Understand Channel Cost Structure
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
USAGE
% of Companies in the industry that use the practice
Integrate purchasing, A/P, & receiving systems
Quadrant II
“Differentiated”
Have a formal system in place to analyze manufacturer performance
Quantify purchase transaction costs
Managing Inventories & Making Deliveries
Key Messages
Wholesaler-distributors must make logistics a core competency or outsource it.
Move from inventory control (“How many do I have?”) to inventory management (“How many should I have?”).
Use technology and other methods to improve processes within the warehouse.
Either make logistics a core competency or consider outsourcing it.
Match customer feedback with internal service level information collected in this process.
Quadrant IV
“Expected”
Quadrant III
“Proven”
High
Low
Low
USAGE
% of Companies in the industry that use the practice
Quadrant I
“Innovative”
Measure GMROI/Turn & Earn on individual SKU’s
Enhancing Company Value -- AA Services
Sales Force Effectiveness
Customer Satisfaction
Business Process Re-engineering
Performance Management
Channel Strategies
Information System Planning
Package Software Selection
Profitability Analysis
Inventory Management
Outsourcing
Selling &
Customer
Service
Obtaining
Materials &
Supplies
Managing
Inventories/
Making
Deliveries
Managing Human Resources
Key Messages
Wholesaler-distributors must actively manage the human resource process rather than merely letting it happen.
Empower and train employees.
Plan for management succession.
Review and reward employees based on customer satisfaction.
Employee Training and Empowerment are Critical to Improving Productivity; Reorganization is also Required
Methods
Sales
Mktg.
Whsg. &
Del.
Inv.
Mgmt
Human
Resources
Exec.
Mgmt.
Employee training &
empowerment
1
1
3
2
1
2
Reorganization/redefinition
of functions and tasks
3
2
2
1
New/improved systems
3
1
1
3
Improved work flows
2
3
3
Compensation tied to
productivity
2
Increases in Training Expenditures Expected
W/D
Today 2000 Today 2000
Total training costs % % % %
HIGH ROTA
High ROTA Firms Benefit from Training
W/D
HIGH ROTA
$
Gross Margin$/FTE
Compensation$/FTE
$
$
$
Contribution Margin$/FTE
$
$
Quadrant IV
“Expected”
Quadrant III
“Proven”
Quadrant I
“Innovative”
High
Low
High
Low
GAP
USAGE
Quadrant II
“Differentiated”
% of Companies in the industry that use the practice
Incorporate customer satisfaction component in the performance review and incentive system
Formally measure company’s annual employee turnover rate
Develop and maintain strong, strategic relationships with external and internal recruitment sources
Enhancing Company Value -- AA Services
Organizational Learning
Human Resource Consulting
Workgroup/Workflow Automation
Organizational Review/Redesign
Outsourcing
Managing
Human
Resources
Trends/Hot Buttons
of
Wholesale
Distribution
Financial Trends in Wholesale Distribution
Sales growth near double-digits in ‘94; lower in ‘95, flat/lower in ‘96
Gross margin percentage continues to be flat/declining
Operating expense control stagnant/ slightly improving
Personnel productivity increasing
Cash to cash cycle stable/improving slightly
Characteristics of better performing firms:
Significant difference in operating expense to gross margin percentage -- lower people and non-people expense
Higher personnel productivity
Better asset management (less debt, better inventory techniques)
Do not have significantly higher sales growth or gross margin percentage
Hot Buttons in Wholesale Distribution / Opportunities for AA
Customer Satisfaction
Customer /Product/Vendor Profitability Reporting
Strategic Planning
Benchmarking
Performance Management
Sales Force Effectiveness
Manufacturer/Wholesaler-Distributor Relations
ABC Inventory Analysis
Shared Services
Wholesale Distribution
Industry Program
------
Support Materials
Wholesale Distribution Support Activities
CLIENT
SERVICE AND
SUPPORT
TRAINING
INFORMATION
4500 Clients
LEADING
EDGE
RESEARCH
Delphi Studies
Surveys
St. Charles
Speeches
Seminars
PAR Reports
Management Foresight
Best Practices Knowledge Base
LIAISON
WITH TRADE
ASSOCIATIONS
WORLDWIDE INDUSTRY
DIRECTOR
Wholesale Distribution Fees
FY 96 FY 95 Growth
ABA 96,090 93,290 %
Tax 42,138 41,839 %
BC 17,078 12,631 %
EFC 6,906 4,929 %
Total 162,211 147,760 %
Cons. 761,733 675,982
% %
Wholesale Distribution Fees
FY 96 FY 95 Growth
US 63,262 57,835 %
Americas
(non-US) 8,434 9,110 (%)
Europe/
Asia 72,835 63,248 %
Pac/Aus 17,680 17,567 %
Total 162,211 147,760
Support Materials
Research Materials and Marketing Support
FTFOC: Transforming Your Business With Best Practices
Powerpoint Presentation
Generic Articles for Local or Trade Press
Industry Information
Credentials Binder (update coming 1/97)
Quarterly Newsletter (“Channels”)
Wholesale Distribution Industry Team Monthly Report
Back Issues of Distribution Newsletter
Brochures (Management Foresight / Logistics 2020)
AA On-Line
Web site
Support Materials (Cont’d)
Proposal Support
Client Lists
Sample Proposals (Chicago and National)
Presentations to Wholesaler-Distributors
Customer Profitability
Benchmarking
Sales Force Effectiveness
Customer Satisfaction
Channel Strategies
Wholesale Distribution
Industry Program
------
Future Initiatives
Future Initiatives
NAW Competency Center
Activity-Based Management
Performance Management
Sales Force Effectiveness
Next FTFOC Study
Enhanced Web Site
Process Benchmarking Projects
Confidence Index/Channels Newsletter
Wholesale Distribution
Industry Program
------
Recent Studies
Distribution Industry Delphi Studies
Facing the Forces of Change: Transforming Your Business With Best Practices (1995)
Updates the previous study through the year 2000
Expanded to over 750 industry experts
Conducted in association with the NAW and DREF
Describes the current and pending environment
Facing the Forces of Change 2000: New Realities in Wholesale Distribution (1993)
Over 1,000 industry experts
Update of 1993 study
Best Practices
Facing the Forces of Change: Beyond Future Trends in Wholesale Distribution (1987)
Addresses four areas: Market Forces, Technology Forces, Financial Forces, and Organization Forces
Gathered the expectations of over 650 industry experts
Correctly concluded that through the mid-1990s the industry would undergo aggressive restructuring
The Technology Maze (1991)
Assesses technology applications and spending as well as barriers to success
Concentrates on the effective use of the current technology
Distribution Industry Delphi Studies (Cont’d)
Other Industry Studies
Distribution 2000: The Changing Landscape of Wine and Spirits Wholesale Distribution (1994) -- Done in conjunction with the Wine and Spirits Wholesalers of America (WSWA), this study highlights the top issues facing wine and spirits wholesalers today and in the future.
Distribution 2000: Trends in Candy & Tobacco Wholesale Distribution (1993) -- Done in conjunction with the American Wholesale Marketers Association (AWMA), this study highlights the trends facing the candy and tobacco wholesale distribution segment to the year 2000.
Wholesale Food Distribution: Today and Tomorrow (1993) -- Done in conjunction with the National Wholesaler Grocers Association (NAWGA) and Andersen Consulting, this study focuses on the background and current role of the grocery wholesaler, key issues facing the channel and potential responses and roles for food wholesalers in the future.
Other Industry Studies (Cont’d)
The Steel Service Center Industry in 1995: Turning Trends Into Results (1991) -- Done in conjunction with the Steel Service Center Institute (SSCI), this study identifies trends and issues facing steel service centers through 1995.
Stockless Materials Management: How it Fits Into the Healthcare Cost Puzzle (1990) -- Done in conjunction with the Health Industry Distributors Association (HIDA), this study focuses on improving materials management practices through stockless programs in the Healthcare industry.
Wholesale Distribution
Industry Program
------
Management Foresight
Management Foresight
Our Mission . . .
To perform leading-edge research in the wholesale distribution industry to further our image as the premier provider of professional services to the wholesale distribution industry.
To support the efforts of the firm’s Wholesale Distribution Industry Program by assisting in wholesale distribution-related practice development initiatives, proposals, and engagements for other offices within the firm.
To support the firm in survey-based engagements outside the wholesale distribution industry.
To support the Chicago office Business Consulting engagements within the wholesale distribution industry.
As an integral part of Arthur Andersen’s Wholesale Distribution Program, Management Foresight has built an admirable following over the past 20 years among more than 3,000 firms and trade associations. A unit of Arthur Andersen since 1991, its financial and industry surveys have enabled business owners to evaluate their own performance relative to the industry. Management Foresight gains from Arthur Andersen’s breadth of experience, its leading-edge research, and its relentless attention to client needs.
Some of the products/services Management Foresight provides to its clients include:
Management Foresight
Financial surveys (PAR) for almost 30 wholesale distribution trade associations
Monthly Statistical Reports
Delphi Studies
Compensation Studies
Best Practices for Wholesale Distribution
Liaisons With Trade Associations
Following is a partial list of the trade associations for which Arthur Andersen/
Management Foresight routinely performs speeches, seminars or surveys:
American Machine Tool Distributors Association
American Veterinary Distributors Association
American Wholesale Marketers Association
Barber and Beauty Supply Institute
Concrete Reinforcing Steel Institute
Industrial Distribution Association
National Association of Aluminum Distributors
National Association of Electrical Distributors
National Association of Wholesaler- Distributors
National Business Forms Association
National Electronics Distributors Association
National Locksmith Suppliers Association
National Paper Trade Association
National School Supply and Equipment Association
National Welding Supply Association
National Wholesale Druggists’ Association
Northamerican Heating, Refrigeration and Air Conditioning Wholesalers
Outdoor Power Equipment Distributors Association
Power Transmission Distributors Association
Steel Service Center Institute
Wallcoverings Association
Wine & Spirits Wholesalers of America
Practice Support Activities
Proposal/Engagement Support -- Centralized source for wholesale distribution industry information:
Industry Trends
Performance Statistics
Best Practices
Office Seminar Support -- Presentations on industry program research.
Specific expertise in strategic planning or quantitatively-based consulting engagements.
Current / Recent
Industry
Projects
------
NAW
Benchmarking
Project
Process to Benchmark
Purchasing/Inventory Management
Chosen for the following reasons:
Importance to a distributors’ business
Data should be relatively easily accessible
WHOLESALE DISTRIBUTION
Process Classification Scheme: W/D Operating Process
Plan for and acquire necessary resources or inputs
* Acquire capital goods
* Hire employees
* Obtain materials and supplies
* Obtain appropriate technology
Convert resources or inputs into products
* Develop and adjust production process (for existing process)
* Schedule production
* Move materials and resources
* Make product
* Package and store the product
* Stage the product for delivery
5A. Manufacture or Convert Products
Make delivery
* Arrange product shipment
* Deliver products to customers
* Install (if specified)
Manage delivery process
* Document and monitor order status
* Manage inventories
* Assure quality
* Schedule and perform maintenance
* Monitor environmental constraints
5B. Deliver Product
Plan for and acquire necessary resources
* Hire employees
* Obtain materials and supplies
* Obtain appropriate technology
* Acquire capital goods
Develop human resource skills
* Define skill requirements
* Identify and implement training
* Monitor and manage skill development
Deliver service to the customer
* Confirm specific service requirements for individual customers
* Identify and schedule resources to meet service requirements
* Provide the service to specific customers
Ensure quality of service
6. Deliver Services
Bill the customer
* Develop, deliver, and maintain customer billing
* Invoice the customer
* Respond to billing inquiries
Provide after-sales service
* Provide post sales service
* Handle warranties and claims
Respond to customer inquiries
* Respond to information requests
* Manage customer complaints
7. Invoice and Service Customers
Obtain Materials and Supplies
Industries Represented in Project
Electrical
Hardware
Industrial
Metals
MRO Supplies
Wine/Spirits
Purchasing/Inventory Management
Process Workplan
The following identifies the five major steps that were performed by the companies in the NAW benchmarking project:
Goals and objectives of the company for the process/areas associated with the process
Documentation on how employees associated with the process are compensated and performance monitored
Process mapping of the process
Development of time estimates for employees involved in the process
Data collection questionnaire
Inbound
Shipments
Filling an
Order/
Delivery
Forecasting
Buying
Inventory
Control
Process to Determine
“Best Practices”
Inventory Management
Recognize need to buy
Complete purchase requisition information
Confirm with suppliers & enter system
Reconcile purchase order & invoice
Reassessment
Framework for Benchmarking
Obtain,
Understand and
Analyze Best
Practices
Adapt and
Incorporate Best Practices
Recalibrate and Improve
Determine
What to
Benchmark
Understand
Your Own
Process
Analyze Current
And Future
Performance
Gaps
Customize Process Classification Scheme to the Industry
Identify core processes that are critical to the Industry (. process customer orders)
Formulate common definitions of terms (., fill rate, errors, lead time, etc.)
Conduct training on how to process map
Review process maps that are developed by pilot companies for completeness
Provide on-site facilitation and analysis of each pilot company’s process maps
Review all process maps from pilot companies to ensure consistency. Arrive at quantitative and qualitative best practices and link to best performance
Conduct survey of companies to gather quantitative and qualitative data on the customers order process
Create report of best practices
Create and distribute a customized confidential PAR-like report for each company to compare and contrast to all companies
Conduct group session to:
(1) explain what the data means
(2) identify performance gaps, and
(3) brainstorm possible solutions
Prioritize changes needed to implement best practices. Perform cost/benefit analysis if required
Assist in implementing the best practices
Create ongoing monitoring system with proper performance measures
THIS PROJECT COVERED THESE FOUR STEPS
Project Deliverables
Each participating company received a custom report that shows their individual performance measures and how they compare to the other participants
The “Best Practices” for the process were presented to the group
The Deliverable for DREF was a White Paper describing the project
Benefits of the Project
Learn benchmarking process and steps in a short timeframe
Exchange ideas with other companies on this process
Enable internal benchmarking at other locations to occur
Allow participants to understand their own process better and to collect appropriate performance measures
Background
on
Industry Program
------
NAW Executive
Compensation Study
NAW Large Company Executive Compensation Survey
Conducted every two years.
1995 survey covered 10 top executive positions
Companies over $100 million in sales.
All aspects of executive compensation were probed.
Results available only to the participants.
Background
on
Industry Program
------
Cross-Industry
Compensation Study
Cross-Industry Compensation Study
Comprehensive study that obtained payroll information and covered all areas of the wholesaler-distributors’ business:
Executive Delivery Administration
Sales Purchasing
Warehouse MIS
Additional information was gathered on sales force characteristics and types of benefits offered.
Total of over 150 participants, representing 22,000 employees and $ billion in sales.
Several trade associations participated in the project, including NWDA (drug), NWSA (welding supply), and PTDA (power transmissions).
Final deliverable is an industry report that showed results by MSA code.
Report is available internally for $50 and externally for $250.
Background
on
Industry Program
------
Global
Best Practices PMT
Wholesale Distribution Performance
Measurement Tool
One of several PMT’s included in GBP Knowledge Base.
Allows to enter client’s/target’s financial and operating figures and benchmark performance against several wholesale distribution industry segments:
Electrical Paper Grocery Electronic-MRO
Industrial Food Service Electronic-OEM Plumbing Supply
Also has the ability to create custom benchmark groups.
Valuable not only in the proposal process, but in adding value to current clients, creating opportunities to sell additional work.
Sample Questionnaire Page
