March 2019 - Modern Distribution Management

March 2019

How to Grow a Profit Analytics Culture

Analytics-driven operations can deliver staggering profit gains, but it takes a visionary leader who won’t accept a company’s current limited analytical expertise. In this article the author, who will outline these concepts at MDM’s Pricing & Profitability Summit, www.pnp.com, Apr. 15-17, argues that distributors can shift from a revenue-share mindset to a profit-share mindset by zeroing in on three key metrics: gross profit, cost-to-serve and net before compensation. It also outlines how the concepts of line-item profit analytics and quantum costing can create an effective analytics environment. This article is an excerpt from a chapter in A Distributor’s Guide to Analytics, a book published by MDM.

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Commentary: Profit Dynamics in a Shifting Business Cycle…With a Twist

As we wrap up the first quarter of 2019, MDM is hearing distributors confirm the recent warnings by business economists of a tapering economic cycle on the back side of a record 2018: leading indicators point in the same direction. No one can accurately predict if, when or how deep a market downturn might unfold.

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