Salient Margin Minder. Max. Maximum Profit Performance for DSD Beer Wholesalers

Transcription

1 Salient Margin Minder Max Maximum Profit Performance for DSD Beer Wholesalers

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3 Salient Margin Minder Max Maximum Profit Performance for DSD Beer Wholesalers Table of contents Introduction Visibility Drives Performance 4 How Margin Minder MAX Works 5 Managing the Marketplace The Basics (sales, revenue, cost, margin) 7 Feature Advertising 11 Recoveries/Off-Invoice Data 12 Merchandising Space & Shelf Management 13 POS 14 Displays 16 Taps 17 Banners 18 Making The Best Case for Retailers 19 Collections 20 Monitoring Operations Efficency Supply Chain & Inventory Management 21 Loading 22 Delivery 23 Vehicle Tracking 24 Getting to True Net Margin Minder MAX Brings It All Together 25 The Dynamic P&L 26 Margin Minder MAX Capability Summary 28 Testimonials 29

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5 Visibility Drives Performance Beer wholesalers manage a complex mix of customers, products, warehouses, merchandise, adverti ing initiatives, fleet and delivery operations. They have many complex trading arrangements with both suppliers and customers, with extensive investments in materials and equipment, and direct and indirect payments for feature advertising and other retailer activities. MARGIN MINDER MAX accounts for value contribution... revenue, cost containment, profit and loss, productivity and efficiency. It takes data from any source... invoices, load sheets, work orders, payroll files, etc... and then organizes these data streams into a management information super-store that mirrors a DSD beer wholesaler s unique business environment. Every manager, from the top to the street, gets a super-fast, easy-to-use toolkit to manage the information interactively. MAX lets them easily interrogate huge data bases and then just as easily visualize how individual decisions drive results. MAX runs on Salient s UXT technology, the world s most advanced platform for business activity monitoring. How Margin Minder MAX works Margin Minder MAX is a tightly integrated client / server business activity monitoring (BAM) application that bolts on to several back office processing sources (no IT changes are necessary). User access is via TCP/IP LAN, WAN and Net. Its data engine / server is highly scalable to billions of transactions without compromising speed or granularity. It exploits all means compression, n-dimensional grid indexing, SMP and MPP and more to deliver maximum intelligence in minimum time to hundreds or thousands of on-line users. It integrates transactional and causal data from any source. It s Minder client is a user driven intelligence assembler and presenter. It operates on both fat and thin Windows clients and reports in real time. Sales Accounting Systems Other Transaction Processing Systems Financial Systems Virutally Any Other Source! Margin Minder MAX Load & Go (optional) MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 5

6 INTRODUCTION HOW MARGIN MINDER MAX WORKS It s completely dynamic... Every view is always up-to-date and interactive, which means users can start from anyplace and quickly go anywhere... drill down into the district, brand, key account that isn t meeting expectations... zoom in on a particular week or day, etc. For example, here is a 10-second graphical drill to find distribution voids. Just double-click to list customers who didn t buy Best Beer. Another click reveals which products they did buy. On the following pages, you ll see more examples that represent how different department managers and executives might see their information through MAX. 6 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

7 MANAGING THE MARKETPLACE THE BASICS (Sales, Revenue, Cost, Margin) The marketplace is the core of every beer wholesaler s business and most of its history is recorded on invoices. MAX organizes every relevant sales fact (sales, revenue, cost, margin, etc.) according to the many dimensions of the beer business so that everyday managers can explore and discover answers to the critical questions and seize opportunities faster than ever before. Typical Applications Create a morning review to examine the performance of yesterday, last week, month, period, etc. Compare results to budgeted goals. Compare Sales, Revenue, Cost of Goods, Margin, etc. between any timeframes, organized by any attribute, Region, Channel, Brand, Package, etc. Analyze market penetration, product cannibalization, etc. Find customers, sales representatives, products, etc. who aren t meeting expectations. Compare Volume, Revenue, and Margin vs budgeted goals and any other time. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 7

8 MANAGING THE MARKETPLACE THE BASICS (Sales, Revenue, Cost, Margin) Compare Multiple Timeframes (this week, four weeks, thirteen weeks, and year-to-date). Compare Year over Year Volume Trends by Key Account. 8

9 MANAGING THE MARKETPLACE Show, then list customers who are outside the normal price range. Depth / Frequency Analysis. Show the effect of price changes on volume over time. 9

10 MANAGING THE MARKETPLACE THE BASICS (Sales, Revenue, Cost, Margin) Penetration and Trial. How quickly is the marketplace adopting a new product? (purchased one or more). Customers who haven t tried the product. Customers who purchased the product at least once, but aren t buying regularly. Customers who are consistently buying the new product. List customers who aren t buying the new product. What did those customers buy? 10 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

11 MANAGING THE MARKETPLACE FEATuRE ADVERTISING MAX integrates ad information (costs, number of ads, advertised price, discounts) with sales data, to show how much ads boost sales and profits. Typical Applications Correlate the cost of ads with sales. See advertising effectiveness by Chain, Channel, Region, Demographic, etc. Track discounted pricing throughout off-premise chains (at Chain and Store level). Feature Ads vs Volume and Margin. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 11

12 MANAGING THE MARKETPLACE RECOVERIES/OFF-INVOICE DATA MAX can track any cost or revenue stream down to the individual sale, even if the amount comes into the system as a summary value. For example, MAX can allocate recoveries, rebates (incoming or outgoing), freight fees, taxes, overhead expenses, or any other cost or revenue, based on any criteria groups of customers and/or products, customer or product attributes, date range, sales volume, percent of total revenue, etc. So, users can see the true cost, revenue, and profit of every unit sold. Typical Applications Distribute rebates from the brewery (recoveries) to the individual units sold over a particular timeframe. Enter taxes as a percent of revenue. Assign operational and overhead expenses (payroll, warehousing costs, freight fees, etc.) to products, customers, and more. Compare Extended Costs and Brewery Rebates by Product. 12 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

13 MANAGING THE MARKETPLACE MERCHANDISING - Space & shelf management MAX can integrate survey and syndicated data on shelf space to show the effect of changes in space allocations on sales results. As always, the information is always current and available on demand. Typical applications. Monitor inventory / allocation of any / all SKUs by store or any roll up such as chain or channel. Spot trends and possible problems. Determine real sell-through and profit for presentations to retailers. Correlate causal changes in shelf space or position with changes in results of sales, volume, revenue, cost. perspective such as chain, channel or territory. Monitor days on hand / out of stocks (own and competitors). Identify opportunities for increased sales. Optimize product turns. or margin. Evaluate from any Compare. Space vs Volume / Revenue / Margin (facings / cubic / square feet / linear feet). Here we introduce a new kind of data (shown in pink) that tracks business conditions or causals. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 13

14 MANAGING THE MARKETPLACE MERCHANDISING - POS As a beer wholesaler, you probably invest heavily in Point of Sale (POS) materials. As with any investment, savings can be achieved by careful management. MAX keeps sales history together with history of placement types, requests, dates, quantities, sizes, locations, costs, competitor information, and more. The result is a moving picture of net value contribution of merchandising investments. Typical Applications Maintain and grow your share of POS in the market. Identify customers who do (and don t) deserve more POS investment by correlating POS spending with overall revenue and margin. Compare POS to Competitors POS. Do we have the market share? Total number of pieces. Our share of the total. 14 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

15 MANAGING THE MARKETPLACE Compare POS quantity with sales results. Which customers deserve another sign? Lone Star Steakhouse has too many signs compared to their low margins. Pitic Restaurant has extremely high margins, and could use more signs. POS by Customer Site. Compare Quantity vs Cost vs Overall Margin, then, for one site, show by brand identity and type. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 15

16 MANAGING THE MARKETPLACE MERCHANDISING - Displays MAX integrates information about number, type, and volume on display, as well as competitor information to help managers monitor display activity and control performance. Typical Applications Compare your displays to competitor displays. Obtain and maintain the market share. Measure the effect of displays on sales volume, revenue, and margin. Compare Shares of Volume on Display and Number of Displays. Trend. Sales Volume vs Display Activity. Salient uxt lets you compare two different types of data at once, scaling the different data types to separate axes. 16 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

17 MANAGING THE MARKETPLACE Taps More taps at your customer locations mean more kegs sold and higher revenues. MAX can integrate information about number of taps (own and competitors ) to show how to increase your market share. Typical Applications Compare your taps to your competitors taps by customer, market segment, or any other way. Find opportunities for new tap placements. Compare Tap Count and Tap Share vs Competitors by Segment, with Sales Measures. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 17

18 MANAGING THE MARKETPLACE MERCHANDISING - Banners To make the most of banner investments, Salient uxt can integrate number of banners made, banner requests, number of hanging banners, and all banner costs. Typical Applications Evaluate banner usage and cost by Salesperson, Customer, Division, Market Segment, etc. Correlate cost of banners to sales and profits. Is there a return on investment? Compare / Interrogate Banner Cost vs Volume vs Margin by Salesrep. Do customers have unjustified banner costs? 18 MARGIN MINDER MAX Maximum m Profit Performance for DSD Beer Wholesalers

19 MANAGING THE MARKETPLACE MAKING THE BEST CASE FOR RETAILERS Price - to - consumer information is frequently available through internal surveys or third - party or syndicated data providers. MAX matches these up with beer wholesaler invoice data to provide a view of retailer profitability or the best case. Typical Applications See products flows and competitive shares. Win the contest for feature ads, space, and attention. De - list losers before your customer does. Compare Retail Quantities, Prices, Revenue, Costs and Margin by Prodauct. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 19

20 MANAGING THE MARKETPLACE COLLECTIONS Not only does MAX provide the information and tools to make more money, but it can also enable wholesalers to collect the money that s due to them when it s due. MAX seamlessly integrates A/R information and sales information to show A/R balances, invoice amounts, paid amount, oustanding balance versus revenue or margin, contact information, etc., by any perspective (customer, sales representative, region, channel, etc.). Typical Applications Compare A/R balances to revenue, margin, or any other sales measure. Make others (sales representatives, district managers, etc.) aware of and responsible for past due accounts. Quickly identify the riskiest accounts and provide all information required for immediate action. Elevate A/R to a Key Productivity Indicator status within the company, including it in executive targets, sales management performance evaluations, etc. Compare A/R Balances by Sales Representative. Are outstanding balances proportional to revenue How many days past due are this sales rep s accounts? List the worst overdue invoices along with contact information necessary for immediate action. 20 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

21 MONITORING OPERATION EFFICIENCY SuPPLy CHAIN & INVENTORy MANAGEMENT Beer wholesalers keep data about production schedules, orders placed, and inventory levels. MAX integrates all of these into a comprehensive view of the supply chain, tracking ordered quantities, days of supply, projected inventory, actual inventory, received quantities, etc., for every single product. So, you can see exactly how much of every item is currently in-stock, and will be in the warehouse tomorrow, next week, or next month. Typical Applications See the product pipeline daily. Measure the effects of promotions on inventory. Optimize for JIT on both purchasing and distribution. Show the effect of push stocking on carrying costs. Spot stock shortages before promotions start. Stocking Trends. How many days of supply do I have? When should I order more? MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 21

22 MONITORING OPERATION EFFICIENCY LOADING Every load shift manager needs to match up manpower requirements with orders from the trade, and to load vehicles as efficiently as possible, while maximizing the safety of his load crew. MAX uses data from load sheets, payroll, HR files, and other sources to track head counts, load out, load in (returns), total delivered, labor hours, safety incidents, etc., so that load managers can make their crews more productive. Typical Applications Score / reward load management efficiency. Match up vehicle loads and load times to vehicle capacity. Reduce re-loads and mis-loads / load crew labor costs / net cost per loaded case. Compare Loading Efficiency By Warehouse. Compare Load Out to Load In by Vehicle, Route, Warehouse, etc. 22 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

23 MONITORING OPERATION EFFICIENCY DELIVERy Delivery efficiency means getting the most from drivers, finding the right delivery frequency for all customers, and keeping personnel and trucks at a minimum to decrease costs. MAX uses data from load sheets, handhelds, and invoices (route settlement) to track average volume, revenue, and margin per drop and more. Typical Applications Continuously certify operational productivity. Enable managers to perform day-to-day, day of week, trend and outlier analysis or drop size efficiency. Optimize delivery operations for maximum productivity of human and capital resources. Certify / reward managers for productivity performance. Coordinate merchandising with delivery schedules. Adjust drop size to minimize feature ad pre-loading. Correlate missed stops with sales trends. Reduce missed sales opportunities. Pass / Fail Test. Salient UXT can test customers, products, etc. based on any measures... less than any value, greater than any value, or within a range. Set the criteria (e.g. MC/Drop > $20) and get answers in less than 10 seconds! Test, then list, by Sales Route, those customers with average MC per drop of less than $20. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 23

24 MONITORING OPERATION EFFICIENCY VEHICLE TRACKING Repair and maintenance records, capital asset files, and fuel cards provide rich information on the efficiency of vehicles. MAX can track the entire cost of fleet operations such as depreciation, service costs, and maintenance... even fuel mileage, to show where and how wholesalers can reduce those costs. Typical Applications Monitor mileage per driver and truck. Eliminate high-cost vehicles...sooner rather than later. List, then sort vehicles by % change in fuel efficiency. Which delivery vehicles show unreasonable changes in miles/gallon? In a fleet of more than 600 vehicles, some show up with numbers that require explanation. 24 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

25 GETTING TO TRUE NET MARGIN MINDER MAX BRINGS IT ALL TOGETHER True net value is the net result of all revenues and costs. Perhaps the greatest value of MARGIN MINDER MAX is its ability to bring all of these together in a comprehensive accounting of true net value contribution every day, for the individual customer up to the enterprise. Now, everyone who needs to know can see instantly where and how activity affects profit and growth. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 25

26 GETTING TO TRuE NET THE DyNAMIC P&L The Dynamic P&L of true net value delivers volume, revenue, costs, profit, and productivity... from the customer, product, or asset up to the enterprise. It is updated and available every single day. The P&L compares any two time periods as well as actual vs. budget values. The result is true net value from any perspective. MAX can even integrate transactional data with incident counts (e.g. invoice counts) and causal data (e.g. population) to calculate key productivity measures, such as per drop, per foot, per cap, etc. 26 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

27 GETTING TO TRuE NET Entire company... product... customer. MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 27

28 MARGIN MINDER MAX Capability Summary The MAX Productivity Tracking System... Bolts-on to any data processing system. Scales to many billions of data points, thousands of users. Integrates and organizes transactional and causal data from many business functions into a coherent, whole enterprise productivity tracking system. Provides a rich suite of tools for activity data interrogation, visualization and analysis. Provides objective monitoring of value contribution at all points, for all persons, functions and processes. Supplies information in time to affect outcomes. Delivers anywhere, anytime. 28 MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers

29 TESTIMONIALS Based on a recent survey of our current customers, our systems save them huge amounts of time and money. In fact, most customers have been able to increase their margins by 3 to 5 cents per case since installation, and have paid back their investment in less than a year. Our Salient system has been relatively maintenance free, paying for itself initially, then again year after year. We used to spend the first week of every month pulling reports, but now we don t need to set aside any significant time for that, it is always available. This has been a huge time saver. Sales managers don t have to wait in line for reports they need now. Joe Gatz, Manager of Information Systems Town and Country Distributors (Miller Distributor). Itasca, IL Payback on our Margin Minder was obtained in 6 to12 months. Payback consisted of time savings for people who were doing long report generation and identifying pricing problems quickly, enabling us to correct them, going forward. In a pricing scenario, Margin Minder/UXT has definitely added 2 cents to a nickel per case, no less than 2 cents for sure. Joe Dempsey, CFO Cresent Crown Distributing, LLC (Miller/Coors/Shared House Distributor). New Orleans, LA We made our money back in about six months after purchasing Margin Minder, achieving an average per case increase of about 5 cents per case in our major packages that drive margin and volume. Without a doubt, it is the best software we have ever bought. Budweiser Distributor On a general level, it only took about 25 minutes for a payback because we were finally able to see things in real time. In the bigger scheme of things, it probably took twelve to sixteen months before we saw a complete payback on Margin Minder because in that time we were able to arrive at tactical pricing promotions and make valuable changes versus on what we were doing in the past. Anheuser-Busch Distributor Our Sales Managers are now about 100% more effective with Margin Minder. Aaron Dym, Controller, MIS W&L Sales (Coors Distributor). Harrisburg, PA MARGIN MINDER MAX Maximum Profit Performance for DSD Beer Wholesalers 29

30 About Salient Salient Corporation makes very large scale in-memory intelligence technology for ad hoc data interrogation, visualization and root cause analysis. The company provides continuous audit, performance monitoring and forensic applications for business, health care, education and government. For More Information To discuss Salient Geo can work for you, and to consider a low-cost, quick-start solution for a fast-track answer to your most pressing current issue, call (607) , or the Salient Management Institute at smi@salient.com.

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32 Salient Corporation 203 Colonial Drive Horseheads, NY USA phone: fax: salient.com 2008 Salient Corporation