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Distribution and Logistics Solutions
Key Industry Drivers and Trends
• Downward pressure on thin net profit - 2% average in industry
• Constrained revenue growth (competitive pressure, new business models, disintermediation)
• Greater power on the part of dominant business partners (suppliers and customers)
• Supplier relationships - consolidation, globalization
• Customer relationships - demand for services, product proliferation, supplier rationalization, customer solvency
• Competitors - consolidation, price competition, alternative channels (mega retailers, 3PL)
• Growth of marketing and technology as disciplines
Initiatives
• Supplier Profitability
• Customer Profitability
• Product Profitability
• SKU Rationalization
• Fact-based Contract Negotiations
• Menu Based Pricing / Product & Service Pricing
• Operational Efficiency - process changes, benchmarking, capacity utilization
• Supply Chain Costing and Profitability
Acorn Deliverables
• Supplier analysis, top-bottom profitability, whalebone
• Customer analysis, top-bottom profitability, whalebone
• Product analysis, top-bottom profitability, category
• Sales force analysis, territory profitability
• Segment analysis, top-bottom profitability
• Channel analysis, top-bottom profitability
• Order breakeven
• Capacity analysis
• Activity (process) cost analysis
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