PROGRAM
FINANCES
Analysis and strategic planning for the systematic enhancement of business profitability.
ASSORTMENT
Assessment of the efficiency of working with the assortment.
SALES
Evaluation of the sales department's performance.
STAFF KPI
Salary criteria and certification.
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Finances
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Decompose business into components to assess the standard efficiency and profitability of each aspect: sales, marketing, warehousing, logistics, procurement, and administrative costs. Next, compare these metrics with industry benchmarks.
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If you have a group of companies, we conduct efficiency analyses on each business unit: distribution, manufacturing, retail, and e-commerce.
- If our operation is solely distribution-based, we'll scrutinize the effectiveness of each exclusive contract or focus team.
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If you are a manufacturer with a branch structure of direct sales and a diverse range of products from other brands, we'll analyze performance by branch and product portfolio management.
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For manufacturers utilizing a distributor-exclusive model, we'll evaluate distributor performance akin to an outsourced sales department.
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Sales growth planning aims to achieve the following: 1) qualitative growth in gross profit; 2) enhanced profits post-sales; 3) improved return on assets (ROA) through increased operating profit and enhanced quality indicators for accounts receivable and inventory investments; 4) a net profit margin exceeding market standards.
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Assortment
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Inventory turnover and margin metrics analysis: Identifying opportunities to optimize return on invested capital in inventory (ROI TK).
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MML assortment management. Developing the potential of internal and market MML assortments, focusing on sales quality and inventory management effectiveness.
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Establishing KPI evaluation criteria for buyers to ensure warehouse inventory quality and purchasing margins remain high.
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For distributors: how can you keep capital “frozen” in inventory if the supplier is “stifling” with purchasing plans? Recommending innovative business proposals to suppliers.
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For manufacturers working through distributors: Implementing inventory management strategies to foster strong partner loyalty. Proposing compelling business concepts to distributors.
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Sales
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If you operate as a distributor or manufacturer with your own branches, conducting an evaluation of the sales department involves analyzing key distribution metrics + an assessment of work with overdue receivables = remove dead zones that reduce these indicators.
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Assessing the effectiveness of field agents' work automation (via a mobile application) entails determining essential features needed for agents to utilize it effectively as a navigation tool to meet daily targets.
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Evaluating the performance of the supervisory system. The usual understanding of the work of supervisors is that of controlling agents and being a “fireman.” The diamond quality of a supervisor is to facilitate agents' self-improvement, fostering self-control over mere control.
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For manufacturers working ttthrough distributors in mixed or general pricing teams, the focus is on channeling distributor agents' efforts systematically and over the long term towards prioritizing your brand.
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Compensation for price promotions for retail customers and compensation for the maintenance of sales teams, why does this harm both the manufacturer and the distributor? What can be done instead?
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Staff KPI
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What KPI system for sales representatives, supervisors, head of sales, executive director and/or branch director will create sustainable growth in sales profitability?
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What KPI framework for regional and territorial managers will facilitate sustainable sales expansion for a manufacturer operating through distributors?
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Rather than hiring employees, we seek to hire their energy. How can we cultivate and sustain high levels of motivation and drive among individuals, particularly during periods of ongoing change?
What are the expected
RESULTS?
Finance, Assortment
Based on your data, we will conduct an assessment of the business's key performance indicators. We will compare them with industry benchmarks and metrics observed in other companies. This will provide a clear understanding of why an increase in sales may not necessarily lead to improved profitability. Regardless of how much effort is invested, there are certain patterns in the layers of profit margin growth across three levels. If these patterns are not adhered to within the company, profitability cannot be expected. Our goal is to analyze and identify what is working well for us and how to enhance it, as well as what is not working well and how to address or prevent it.
Sales, Staff KPI
After the financial analysis, we will delve more deeply into three key sections of the business: assortment, distribution, and sales department KPIs. The main goal of the analysis is to understand how these segments of the business are currently synchronized with each other, what the concentration of focus and energy of efforts is. This will enable us to reorganize the focus on assortment, focus on sales department work, and the KPI system for each position. At the finish line, there will be a clear systemic understanding of what needs to be done, how to manage it, and how to effectively implement changes.
About
Nikolay Doroshchuk
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Entrepreneur, business consultant, researcher.
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Business partner in several distribution companies from different countries.
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Two European business educations (1998 and 2020).
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Author of the "Quality Distribution Building" program since 2001.
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Author of the "Profitable Management" program since 2018.
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Author of the books "Distribution in Practice" and "Supervisor's Workbook".
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Experience in distribution since 1995.
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Member of the European Distributors Association (7 years).
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Practices yoga, meditation, retreats, and studies ancient wisdom, which is integrated into business and personal life.
Contact
Maryna Doroshchuk
Marketing Development Manager, WorldWide
KPD-Expert
+39 351 69 00 422