Issue link: https://www.e-digitaleditions.com/i/540646
July/August 2015 27 916-638-9902 www.englishmfg.com "The Sneeze Guard With Curve Appeal" ™ The following chart shows the additional sales necessary to make up for various amounts of lost or damaged material. This is what we call an "Alka-Seltzer" illustration. After deter- mining the real cost of lost and damaged material, many distributors reach for the bicarbonate of soda to relieve their heartburn. And the figures in this chart don't take into account the extra labor necessary to clean up after Joe and find the material he misplaces. How much effort does it take for your sales department to generate additional sales of $2,500 per month ($30,000 per year)? You must make sure that every employee understands the true cost of lost or damaged material. When they kick a box out of the way, they're kicking the source of funds for their paycheck! About the Author Jon Schreibfeder is president of Effective Inventory Management, Inc., a firm dedicated to helping manufactur- ers, distributors, and large retailers get the most out of their investment in stock inventory. He is the author of numerous blog entries and a series of books on effective inventory management, including the recently published Achieving Effective Inventory Management (5th edition) and the National Association of Wholesale Distributors' Guess Right – Best Practices in Demand Forecasting for Distributors. To reach him, call 972-304-3325. Lost Material continued Net Profit Before Tax: 4% 3% 2% 1% Value of Lost Material $50 $1,250 $1,667 $2,500 $5,000 $100 $2,500 $3,333 $5,000 $10,000 $250 $6,250 $8,333 $12,500 $25,000 $500 $12,500 $16,667 $25,000 $50,000 $1,000 $25,000 $33,333 $50,000 $100,000 $10,000 $250,000 $333,333 $500,000 $1,000,000 Members, FEDA NEEDS YOUR HELP to Promote FDI The FEDA Data Interchange (FDI) initiative is off to a great start. There are currently 112 manufacturers who've com- mitted to participating, 34 of which are actively publishing order tracking status information. While we're having great success, FEDA NEEDS YOUR HELP to accelerate this pro- cess. We currently have 1,158 dealer personnel using the platform. Please visit the participating manufacturer list at http://www.myopenorders.com/manufacturers/. If you see a manufacturer that's committed to participating, but not yet publishing data, please ask them to do so. If you see one of your preferred manufacturers that's not on the list, share with them why it's important to participate. Lastly, thank the manufacturers that are publishing data for their support.