Achieve Massive Gains in Profitability with Line Item Analytics
Ron Holm, Trainer — Max Sacks Int'l
• WayPoint Analytics • WayPoint systems • management strategies • Wholesale Distribution Industry • business math for distribution • LIPA • line-item profit analytics in distribution
Monday, April 24, 2017—Ron Holm, Director of Business Development, speaks with Randy MacLean to help answer common questions that arise when wholesale distribution companies are considering the benefits that WayPoint Analytics can provide.
Customers, especially wholesale distributors, have long used ERP solutions to manage inventory, manage receivables, and provide reporting at a company level. Generally, these tools offer gross margin as an important indicator of profitability. And while gross profit is important, its usefulness is limited.
Existing ERP systems do not report to the granular level of telling companies exactly which activities generated profit and which did not. And, this is the type of information that can be used to take a giant leap forward in profits.
What is the benefit of moving from gross margin reporting to line item analytics?
Using line item profit analytics opens up activities, processes, strategies, and tactics that can be used to optimize profitability. In fact, Randy's experience has shown average gains with this approach of 174%. And, these are permanent and sustainable gains because underlying inefficiencies have been uncovered and corrected using deep analytics.
Time and again, line item analytics shows that companies actually make more money than they know. The money is already there. In fact, according to Randy, 62.5% of all invoices are money-losing invoices. Companies don't even know that they are making most of their money on the best part of the business, and then losing it through a bunch of money losing sales.
In essence, the secret to line item profit analytics is in helping companies lose less of the money they are in fact already losing.
For more information about Ron Holm, visit: www.maxsacks.com/people/ronholm.html