I'm a strategy consultant to
distributors. I was, however before I became a distributor for a
few years. So now I'm back after getting some great action
on the front lines helping my star client finish a great succession strategy
and writing my new book.
I know it's tough out there right now, but I'm really looking forward to
helping the right companies to get productive, generate cash and get on
the growth track again.
- Neil
OK, so I took a hiatus to work for a real live distributor after
being a consultant. Yup, I had to make this stuff work for real.
It was great fun. Like a giant test lab for me. Good thing most of the
tests worked! You can ask Sam McCamy about that.
Worked on pricing, new product intro processes, taking 3D marketing to
the next level, leaning up inventory, setting up a sales review
discipline, organization planning, planning a couple of acquisitions,
getting SPA processes and product data ship shape, getting people to
work on teams, reallocating accounts to sales forces, integrations,
Growth Planning and more. I loved it.
Wished it could have lasted, but we sold it for a nice price to a great
company.
Then I helped a non-profit family business organization develop a new
value strategy for it's members.
Still doing that... but got the itch to get back in "the channel".
Back to consulting.. but refreshed!
In three years, you'd be amazed how fast they forget about you.
I
did, however consult to quite a few distributors, a group of 18
distributors called the Vanguard Distribution Group, wrote for some
magazines and gave a few presentations at conferences. Helped a couple
of distributor associations plan their futures. Wrote over 100
articles.
OK, you don't remember. See what I mean?
Consulted to some big Manufacturers, too. The Industry Data Exchange
Association. eBusiness companies. You STILL don't care? Ok, back to the
distributor stuff.
So I sat back and consolidated the stuff I learned that creates a
scalable, profitable growth business for distributors, and honed
it into the Profit Triad and The Eight Steps. Just for you folks.
Wholesale Distributor Consulting Services
Do you want a
consultant that performs individual services for the money or
one that can help you and your team to discover how to generate
more cash, drive higher productivity and grow your business?
Neil's
“Discover Your Core, Then Go For More” Method
Creates Profit Growth,
not just Sales Growth.
The
problem with most companies is that they get good at one thing, like
sales, operations, marketing or financial management, sometimes two and
almost never all three of the points of the "Profit Triad". Those
that do approach and exceed 10% EBITDA. Those that don't stay in the low
single digits or worse.
Neil's services
are interrelated because he knows the relationships between
Market Positions, Productivity and Gross Profit Per Order in
creating PROFITABLE Growth. He will not let you off the hook doing
only part of a three part job. Whatever Neil does is designed to
make you money, not just boost sales.
Services to Drive
Profitable Growth
Profit TriadTM
Strategic Assessment and Planning Services
Generate Cash, Drive
Productivity and Plan for Growth with an expanded view
of growth opportunities. Put more profit on the bottom
line this time around. This is Neil's premium consulting
service. Get ready to transform your company.
Customer Perception
Analysis (CustomerVision) Neil originated these back in the 90's. Now they
are done on the web. Discover what's important to
customers, how you are rated as compared to competitors
and what customers want that nobody provides. Plus,
Neil's personal assessment of what you need to change.
Competitive and
Territory Analysis (CompetitorVision)
Assess your position relative to competitors and
what you can do from that position. Everything's
relative and there's a specific strategy for every
relative position whether you're the leader, a follower
or significantly behind.
Customer Panels and
On-Site Discovery Do you know the questions to ask customers in a
panel to really get to what they want? Neil does. Don't
stop here, either. The best revelations are always out
at the customer's place of business. Neil knows how to
train your people to analyze the customer's situation,
economics and observe customer processes for hidden
opportunities to create demand and add value.
Supplier Joint Marketing
Program Development Get suppliers really engaged with their time and
money to help train your people plus market and sell to
customers and prospects. Read about Neil's 3D marketing
approach in "Discover Your Core and Go For More"
available in April 2010. Harness the power of your
people and your suppliers on joint market and customer
objectives with a powerful marketing program year after
year.
Speaking Services
Check out Neil's speaking page by
clicking the link above. Or ask me to come and talk to
your team about what's in his book. He wrote it with you
specifically in mind. Get a copy when it's out in April.
Call 865.531.7993
Growth Initiative Planning
Services Need a plan to get into a new market? When you
need to bring a plan together, familiarity sometimes
breeds... well...devil's advocate behavior. The team
shoots each other's ideas down, can't think out of the
box, or can't come up with a plan to find out what you
don't know to be successful. Consider an outside
facilitator that can focus your team's efforts on the
market opportunity, the unanswered questions about it,
the plan to get the answers, and the plan to
realize the opportunity.
Family Business Planning
and Facilitation Succession planning, Family business planning and
strategic planning for the family business is quite
different from public companies. Many family businesses
only want to talk "business" with a consultant. No
strategic plan is strong enough to overcome family
business relationship issues, however. Talk to a
consultant that knows both: Neil Gillespie.
The "Discover Your
Core Then Go For More" Method for distributors is about:
Making profits and
generating cash, not just driving sales
Driving all three
points of The Profit Triad for peak profitability and growth:
Leading market
share
Leading
productivity
Strategic
marketing that drives gross profit per order.
Expanding your view
of growth opportunities for a never ending progression of growth
Consider this quote from the premier distribution acquirer and field
strategist of this generation:
Get The premier
distribution strategist in the industry. As a planner for
manufacturers, Neil developed territory review and distribution planning
disciplines for GE Lighting, Electrical Distribution & Control, GE
Corporate Marketing and Development and Eaton Electrical.
Neil developed his
discipline further for other manufacturers as a consultant, and used the
discipline to help distributors plan their approach to different
trading areas.
Star client Roden
Electrical Supply used his methods to plan their trading area
development plans in the 1990's and 2000's. They never lost an
acquisition objective to a competitor.
Neil's competitive
analysis discipline is still used to this day in those companies.
The approach is emulated by others, but the real value is the insights
into how to attack competitive market positions that you'll only get
from Neil.
Click on the thumbnail
for a view of Neil's legendary territory/competitive analysis template.
<---Click
the thumbnail to the left
The Profit TriadTM
Strategic Review
Get lean
and productive, generate cash, and get back on the growth track.
Click on
the thumbnail below for Neil's unique and stunningly logical "Profit
Triad" approach to measuring and managing a distributor business:
<---Click the thumbnail to the left
1.0
Density Metrics
(achieved by leading value and market share in a territory)
1.1. Sales, Market and Share Trends
1.2. CustomerView Customer Perception of Relative Value by
Segment
1.3.
CustomerTouch: Customer panels and on-site discovery to uncover new
ways to add value.
1.4. Growth Diversity: % Revenue and Margin by Growth Category
1.5. CompetitorVision: Relative Market Share to Next Closest
Competitor by Segment
1.6. Revenue Per Square Mile
1.7. Accounts per Square Mile
2. Productivity Metrics and Processes
2.1. Front Room
2.1.1. IS Sales
2.1.2. Counter
2.1.3. Outside Sales
2.1.4. Web Orders
2.1.5. EDI Orders
2.1.6. Purchasing
2.2. Back Room Productivity 2.2.1. Purchasing
2.2.2. Warehouse
2.2.2.1. Receiving
2.2.2.2. Picking
2.2.2.3. Delivery
2.2.3. Accounting
2.2.4. A/P
2.2.5. A/R
2.3. Asset Productivity
2.3.1. Inventory turnover and days of inventory in stock
2.3.2. Receivables DSO
2.3.3. Payables DSO
2.3.4. Net Cash Flow Days
2.3.5. Total Asset Turnover (Sales/Total Assets)
2.3.6. Cash Generation
(Net cash generated)
3. Gross
Profit Per Order Metrics and Processes
3.1. Product Mix Per Customer 3.1.1. Average line items and Gross Profit Dollars per order
3.1.1.1. Counter
3.1.1.2. Inside Sales
3.1.1.3. Web & EDI Orders
3.1.1.4. Customers
3.1.1.5. Market Segments
3.1.2. Number of Product lines >= 5% of total purchases per customer
indexed to average for company
3.1.3. Conversion Successes by Outside Salespeople
3.1.4. Customer Profitability: (and segment profitability) Gross profit
less activity based costs per customer if available from your system.
Gross profit less average costs per order compared to average GP$ per
order if costs not easily developed.
3.2. Pricing and Costing
3.2.1. Product Data Completeness/Accuracy: % Units with errors in price,
UOM, base cost
3.2.2. % Manufacturers with Special Nets that provide loadable or auto
mapped files
3.2.3. Pricing Matrix: GMROI by Product Line & SKU, Review of Matrix
Structure
3.2.4. SPA/Rebate Administration Processes and Policies
3.2.4.1. % manufacturers On Loadable Price Notifications
3.2.4.2. % manufacturers on automated claims
3.2.4.3. % orders caught with SPA Errors/Omissions
3.2.4.4. % of claims collected by manufacturer
3.2.4.5. average days to collect by manufacturer
3.2.4.6. Uncollected Dollars average balance by manufacturer
3.3 Marketing
3.3.1 Company Identity and Branding Elements
3.3.2 Company Services
3.3.3 Website and Internet Marketing Activities
3.3.4 Marketing Campaigns and Events
3.3.5 Supplier Joint Marketing Programs
3.3.6 Market Segment Product and Service Platforms
3.3.7 Individual Product Marketing Campaigns
3.3.8 Other Marketing Initiatives