Distributor CEOs and CFOs
Chief Executive Officers and Chief Financial Officers are inundated with ‘quick fix’ ideas for improving profits. That’s because these two executives are the dynamic duo of distributor return on investment.
As consultants, we see most distributor CEO’s under constant pressure to increase profits, and CFO’s as vigilant guardians of cost control and avoiding unnecessary risks. Most CEOs don’t make major commitments without the concurrence of the CEO. The strong support of both is needed before embarking on a successful SMART Pricing and SMART CPA journey.
The CEO is also the company’s catalyst for change. The CEO’s leadership is essential to driving behavioral evolution through the management team and the staff. New and better business processes – faster, better, lower cost – demand both analytical prowess and adaptation.
Customer Profitability Analysis and Cost to Serve Analysis (SMART CPA) is built into each SMART Pricing project. Using proprietary cost allocation and assignment algorithms, we measure operating profit by customer, customer group, sales territory, branch and region. We use the insights to recommend tactics to increase order size and reduce cost to serve. We are also able to identify where and what price changes are needed by using pricing analytics to detect below market pricing.
SMART Pricing and SMART CPA combine strategic pricing and customer profitability management tools with the change management help distributor CEOs and CFOs need to drive sustainable profit improvement in their company.