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60 FEDA News & Views where "big data" comes into play in management. With exist- ing technology, having such information readily available is no longer a major challenge. Having an Action-Oriented Mindset Collecting the information is an essential first step. Relatively speaking, it is not particularly difficult. Developing improve- ment programs based on that information is a much more challenging and time-intensive effort. It necessitates specific approaches to improve the two order economics pressure points identified in Exhibit 1. Let's start with Lines per Order. Superficially, this would seem to be nothing more than a "would-you-like-fries-with-that" effort. This is important and where information on performance by a salesperson comes into play. Overtime, salespeople get tired, develop bad habits and fall into low-performance ruts. Continual follow-up and reinforcement is required—but there is also a strategic com- ponent at the total firm level. It is essential to fully understand the range of products that customers would like to purchase. Items not in the product line can't add to the lines per order. It is also necessary to have the items in stock on a systematic basis. Ultimately, being out of stock causes the lines per order to fall to zero. The Average Line Value is by far the more challenging of the two improvements shown in Exhibit 1. It is also more profit- able by far. Customers have the unpleasant habit of ordering only the quantity they need right now. Getting them to buy more is an uphill battle. The key is to work with customers. Show them that placing a lot of small orders costs them more money. Help them plan ahead and buy less often, but more each time. The impact is small but important. A much more impactful course of action is to raise prices where there is the opportunity to do so. Note: This cannot be an across-the-board activity. In every business, there is the potential for modest price increases on slower-selling items. Eventually these small changes add up. Moving Forward Technology is important in helping control payroll costs— but technology by itself will never produce meaningful chang- es. The key to controlling costs is to review order economics on an ongoing basis. About the Author: Dr. Albert D. Bates is director of research for the Profit Planning Group. His recent book, Breaking Down the Profit Barriers in Distribution, is the basis for this report. It is available in trade-paper format from Amazon and Barnes & Noble. ©2016 Profit Planning Group and the Distribution Performance Project. FEDA has unlimited duplication rights for this manuscript. Further, members may duplicate this report for their internal use in any way desired. Duplication by any other organization in any manner is strictly prohibited. Money Matters continued