Driving 8 Critical Initiatives
Executives are focusing on eight areas that address the recent erosion of company profit performance.
- Cost Reduction Strategies
- Pricing Strategies
- Technology & Automation
- Customer Relationship Management
- Market Expansion and Diversification
- Supply Chain Optimization
- Sales and Marketing Tactics
- Financial Management
WayPoint delivers the specific information needed for effective strategies to address each one.
1) Cost Reduction Strategies
With rapidly escalating labor costs, cost reduction really means carefully using manpower only where it produces profits and cash flow. WayPoint pinpoints product classes and customer categories where labor costs are more than covered by profit rates, and where they aren’t. New discipline here significantly boosts financial performance.
2) Pricing Strategies
Sophisticated pricing strategy marries competitive price points to customer / product combinations where profits are guaranteed, and corrects chronic losses associated with small orders by setting minimum quantities by product. WayPoint can recommend the products and minimums that will provide substantial profit gains with minimal impact on customer expectations. The system’s advanced capabilities indicate profit levels are “all-in’ showing where individual item profits are influenced by the likelihood of other items being shipped with them, and the profit differences between stock-replenishment and project-specific orders. (It matters – al lot!)
3) Technology & Automation
WayPoint adds turnkey cost and profit analysis to your existing system. Adding nearly one hundred expert-designed reports, it augments your ERP and other systems, immediately putting powerful tools in the hands or your analysts and managers. They can get to work on actions that improve the company, rather than embark on a lengthy project to collect and crunch numbers. (You provide an accounting system for your accountants, and you need to provide and analysis system for your analysts.) This has been the critical technology for distributors that lead in profits.
4) Customer Relationship Management
Market leaders are defined by their customers – every one of them owns the lion’s share of the profit pool in their market. You need to understand the profit value of every customer, and the efficiency of your relationship with them. WayPoint is the only system that does this our exclusive Profit-Value Segmentation capability. Using this model, you can target customer focus and loyalty programs where they’ll deliver profit growth, and curtail wasteful effort where losses cannot be prevented.
5) Market Expansion and Diversification
WayPoint shows where there are “bright spots” in your business – locations, business lines, product categories, or customer classes that are the best models for expansion and growth. Some growth areas are customer-specific, and WayPoint reports exactly who these accounts are and where certain sales tactics or pricing strategies can be highly productive.
6) Supply Chain Optimization
With the right tools, purchasing can be a powerful contributor to company profits. WayPoint produces the kind of sophisticated supplier reporting used for decades in the Fortune 500 aerospace, manufacturing, and defense industries. You can compare sales credit rates, prepaid shipping, rebate program benefits and all-in profit contribution between suppliers. These are powerful tools for buyers to negotiate for maximum advantage for your customers and your company. No other system can do all these things.
7) Sales and Marketing Tactics
Every customer has a unique conversion rate (conversion of revenue into bottom-line profit). Profit conversion rate is the critical metric for driving sales penetration programs, optimized pricing, your customer loyalty programs, and overall sales focus. WayPoint reports on customer conversion rates as they change throughout the year, so your team can maximize the results of their sales efforts.
The system also reports on the spread between margin and expense rates, opening the door to individually-targeted sales-growth initiatives. (For instance, a high-volume account with a 19% margin and an expense rate at 8% can be profitable at any margin above 8%. So you can assist them with special pricing on bids that can grow their business and yours. With WayPoint, your sales team will know exactly where these opportunities are.)
8) Financial Management
WayPoint provides reporting on precisely where costs are incurred, at a level of detail impossible for your accounting system to determine. Knowing which warehouses are more or less productive, or seeing where cost rates are best or worst, or having instant comparisons across any dimension of the business guides initiative that are both effective and very productive. Executive can focus on the things that matter and can make a real difference. Best of all the reporting is immediately available, and the results track changes in the market and the company. No more hours lost in trying to identify and quantify hidden issues – the system delivers more reports than any other system.
We’d be pleased to discuss any of these items, showing you and your team what other companies have been doing with WayPoint since 2008.
Click here to email us
or call 480-426-9955 today !