Profitable Revenue Growth Project
We worked with one of the largest wholesale distributors in North America, based in San Fransisco, California. Virtually every component of the business was analyzed for profitability, and many custom and unique models developed for future use and further improvement of profitability.
Specifically, customer profitability, proformas, weekly snapshots, budgets, and forecasts were created and reviewed on a regular basis. In terms of customized analysis, territory profitability, item profitability, truck profitability, and pick-line profitability were all developed.
In addition, measures were introduced to monitor pick-line and route performance, as well as sales rep performance on the basis of a metric. All costing was activity-based, thereby differentiating what was profitable and unprofitable in such a way that the results of the decision-making process would be highly predictable and accurate.
Challenge & Solution
The results within a two year period were high double-digit growth with respect to revenues and profit…with profit growth exceeding that of revenues.
In recent years, this has become a larger component of our overall service offerings. In this instance there are far too many clients on an ongoing basis, in too many industries, to easily provide a specific example. They are all equally important to us.
- Know your mission
- Sell to consumer needs
- Promotions and Inside Scoops
- Listen, Ask and Act