FEDA News & Views

FEDAJulyAug2015

Issue link: https://www.e-digitaleditions.com/i/540646

Contents of this Issue

Navigation

Page 16 of 31

July/August 2015 17 DISPOSERS Salvajor Assembly packages are available for sink and cone bowl installations with water- tight energy and water-saving controls. More Disposer Solutions SCRAPMASTER® TROUGHVEYOR® A single operator scrapping, pre-rinsing and food waste disposing system designed for schools, hospitals, nursing homes and cafeterias. A multiple operator scrapping, pre-flushing and food waste disposing system designed for volume users like university cafeterias, schools, casinos, convention centers and correctional facilities. m.salvajor.com for Product Video Specifications Full Product Line DISPOSERS • FOOD WASTE SCRAPPING SYSTEMS • FOOD WASTE COLLECTING SYSTEMS Contact Salvajor today to learn more. salvajor.com • (800) SALVAJOR make sure that they were adequately stocked on the items their customers were most likely to order. Again, the top 200 items are ranked by hits. Just to clarify, a hit is defined as the number of times an item appears on a sales order in a 12-month period. Essentially, we want this number to be very low if not zero. Shipping these items 100 percent complete will make you look very good in the eyes of the customer. Inventory Turns This is one of the most recognized metrics in wholesale distribution. I just want to caution the reader that this is a measurement of stock sales, not all sales. We are really trying to get a handle on the investment made in the location. Unproductive Inventory Percentage This metric incorporates both the inventory that has been classified as dead and the surplus on hand. Both of these kill operating performance. Most distributors carry at least 35 percent more inventory than they need to pro- vide superior customer service. Focus on rightsizing the inventory and perhaps you won't need to upsize the branch. Days to Pay Although this performance measure- ment isn't always handled by the branch manager, it can be a good indicator of how deep the relationship between the sales team and customer really is. I am a firm believer that accounts receivable performance is driven more by relation- ships than it is by the customer's ability to pay. These are a few metrics to get you started. I am sure that you all will come up with other measurements more spe- cific to your business. Feel free to use this as a guide. Giving your new manager this kind of tool is a good start. In order to really make it effective, you will have to invest the time to help them establish goals and teach them how to course cor- rect. Scorecards, metrics and key per- formance indicators are all designed to do one thing: Keep your eye on the ball. Remember, I am always here to help. About the Author Jason Bader is the managing part- ner of The Distribution Team, a firm that specializes in helping distributors become more profitable through strate- gic planning and operating efficiencies. The first 20 years of his career were spent working as a distribution execu- tive. Today, he is a regular speaker at industry events and spends much of his time coaching individual distribu- tion companies. For more information, call (503) 282-2333 or contact him by e-mail at Jason@Distributionteam.com. Also visit The Distribution Team's web- site at www.thedistributionteam.com.

Articles in this issue

Links on this page

Archives of this issue

view archives of FEDA News & Views - FEDAJulyAug2015