6Month
Path to Profit
The Path to Greater Profit
Month 1: Develop a Baseline
Start by developing a baseline of your current profit picture. We will define the structure of the department, develop an education plan for your team, and prioritize the many opportunities to ensure we deliver value starting very early.
Month 2: Purchasing Opportunities
We will treat every purchasing function as an opportunity for profit. This will include comprehensive strategies for price changes, available brackets, and undiscovered opportunity buys. We will create a very innovative atmosphere and a passion for profit
Month 3: Inventory Opportunities
In addition to opportunities for the purchasing process, we will implement equally innovative inventory opportunities. This includes defining strategic inventory layers, evaluating turns, studying carrying costs, and an overall working capital investment mindset.
Month 4: SKU Optimization
SKU Optimization/ Rationalization must become an area of strength. It is equally as important in wholesale as in retail. In addition to the obvious sales and forecast analysis, SKU-level profit margins and drop ship/ special order margins must weigh in to the evaluation. From here a strategic frequency must be established.
Month 5: PO / Invoice Price Evaluation
The additional profit is in the details. A comprehensive process to analyze the price on every Purchase Order will pay dividends. It will also establish the platform for innovative Buy vs Sell profit creation strategies. In addition, Supplier Profit Contribution can be analyzed with new goals established.
Month 6: Direct / Indirect Purchasing
Purchasing practices need to be detailed and analyzed as both Direct and Indirect functions. Goals and opportunities are unique for each. As base inventory areas become stronger, it is time to build expertise in traditionally poor-performing areas like New item performance and Promotional planning.