NAW National Association of Wholesaler-Distributors

Description

This book is a collaboration of the NAW Institute and Texas A&M, two leaders in wholesale distribution education and training.

Have you ever wondered about the following questions?

• Is it possible to achieve the ROI requirement implied by double-digit EBITDA multiples in most acquisitions?
• What are the best practices performed by top-performing firms that differentiate them in terms of profitability/ROI?
• Is there a systematic framework of best-practice implementation that can be adopted by wholesaler-distributors?
• How do best practices enhance shareholder value?
• Where is the link that connects process to profitability?

Authors Barry Lawrence, Senthil Gunasekaran, and Pradip Krishnadevarajan of Texas A&M University answer these questions and more.

The best practices in this book were developed from actual experiences of real distribution firms across our industry. This book is not academic modeling or theory. In addition to powerful distributor best practices, Optimizing Distributor Profitability includes a five-step methodology with clear how-to-implement ideas and tools; more than 120 helpful exhibits; and a separate, over-sized Distributor Profitability Framework map to help you carefully follow how business processes and financial drivers are linked to enhance shareholder value. 

What Readers Have to Say

"The information is organized very well, supported by robust research specifically on the distribution industry, presented in an easily digestible manner, and linked to real-world examples to help convert concepts into actionable items."

— David A. Larson, Vice President–Operations, DW Distribution Inc.

"We are impressed with the material and its potential impact on our profitability. Truly information and education for the times."

— Gary McKillican, President and CEO, McKillican International, Inc.

"A picture is worth a thousand words and the Distributor Profitability Framework map is worth a 100,000 words!"

— Ron Cedruly, CFO, Henrietta Building Supplies

"Thanks for the helpful insight and tools to lead my company into future profitability growth."

— Bob Borsh, President, House of Forgings

"The value received from this concept is immeasurable!"

— Tim Miller, Vice President–Operations, Security Contractor Services

"The work product developed and presented is outstanding!"

— Gary Bodam, Ph.D., Vice President–HR, Stuart C. Irby

Extended Description

Optimizing Distributor Profitability presents the basic idea—a wholesale distribution framework, and a five-step methodology in part 1. Then in part 2, it puts those ideas into action by applying them to each distributor business function (Source, Stock, Store, Sell, Ship, Supply Chain Planning, and Support Services). Each chapter includes the five-step methodology of process assessment as follows:

• Step 1: Presents a template for you to use to identify where your firm stands in terms of common, good, and best practices.
• Step 2: Shows how to use the Distributor Profitability Framework map (a separate insert that is included with the book) to understand the impact of any process gaps (identified in the previous steps) on shareholder value.
• Step 3: Demonstrates how to quantify the impact of implementing a best practice on key financial drivers with financial statements. 
• Step 4: Presents the compendium of best practices and how-to-implement details. 
• Step 5: Highlights the critical implementation components and their role in execution.

Each chapter also presents a real-world example of a wholesaler-distributor (from various lines of trade) that identifies and implements process improvements and the impact of those improvements on shareholder value. Finally, each chapter concludes by showing exactly how you can apply the ideas and methodology to your firm.