How to Build Profit with Analytics (and Enhance Your ERP)

Click on charts for a larger version

All distributors can quickly and easily increase profit rates and cash flow. All that’s needed is to curtail losses from sales that cost more than they produce in gross profit. The challenge is identifying the sales that are cancelling profits already made, and that’s where analytics comes in. In this article, I’ll share how our clients use analytics to curtail the waste and get significant gains in profits and cash-flow.

Where New Profits Come From

There are really three places new profits can come from:

• Increase sales: Find new customers and wrestle them away from their incumbent suppliers; expand into new markets and do the same; sell more to existing accounts. Most companies have been doing these things for decades, and with diminishing results.