Salient Margin Minder. Max. Maximum Performance for the Soft Drink Business

Transcription

1 Salient Margin Minder Max Maximum Performance for the Soft Drink Business

2 Visibility Drives Performance

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5 Salient Margin Minder Maximum Performance for the Soft Drink Business Table of contents Introduction Visibility Drives Performance 6 How Margin Minder Max works 7 Managing the Marketplace The Basics (sales, revenue, cost, margin) 8 Promotions 11 Customer Development Agreements (CDA/CMA) 12 Merchandising Space & shelf management 13 Displays 14 Marketing Equipment (capital, parts, labor) 15 Point of Sale Materials 16 Making The Best Case for Retailers 17 Collections 18 Monitoring Operations Efficiency Delivery 19 Supply Chain 20 Loading 21 Vehicle Tracking 22 Full Service / Full Line Vending 23 Getting to Dead Net Margin Minder Max Brings It All Together 25 The Dynamic P&L 26 Margin Minder Max Capability Summary 28 Testimonials 29

6 INTRODUCTION VISIBILITY DRIVES PERFORMANCE Bottlers operate at all points of the supply chain. They manufacture, deliver and merchandise at retail. They have many complex trading arrangements with both suppliers and customers, with frequent price promotions, extensive investments in materials and equipment, and direct and indirect payments for feature advertising and other retailer activities. MARGIN MINDER MAX accounts for value contribution... revenue, cost containment, profit and loss, productivity and efficiency. It takes data from any source... invoices, load sheets, work orders, payroll files, etc... and then organizes these data streams into a management information super-store that mirrors a bottler s unique business environment. Every manager, from the top to the street, gets a super-fast, easy-to-use toolkit to manage the information interactively. MAX lets them easily interrogate huge data bases and then just as easily visualize how individual decisions drive results. MAX runs on Salient s UXT technology, the world s most advanced platform for business activity monitoring. 6

7 INTRODUCTION HOW MARGIN MINDER MAX WORKS It s completely dynamic... Every view is always up-to-date and interactive, which means users can start from anyplace and quickly go anywhere... drill down into the district, brand, key account that isn t meeting expectations... zoom in on a particular week or day, etc. For example, here is a 10-second graphical drill to find distribution voids. Just double-click to list customers who didn t buy Our Cola. Another click reveals which products they did buy. On the following pages, you ll see more examples that represent how different department managers and executives might see their information through MAX. 7

8 MANAGING THE MARKETPLACE THE BASICS (Sales, Revenue, Cost, Margin) The marketplace is the core of every bottling business and most of its history is recorded on invoices. MAX organizes every relevant sales fact (sales, revenue, cost, margin, etc.) according to the many dimensions of the soft drink business so that everyday managers can explore and discover answers to the critical questions and seize opportunities faster than ever before. Typical Applications Create a morning review to examine the performance of yesterday, last week, month, period, etc. Compare results to budgeted goals. Compare Sales, Revenue, Cost of Goods, Discounts, Margin, etc. between any timeframes, organized by any attribute, Region, Channel, Brand, Package, etc. Identify unjustified price breaks. Analyze market penetration, product cannibalization, etc. Find customers, sales representatives, products, etc. who aren t meeting expectations. Compare Volume, Revenue, and Margin vs. a Year Ago or Any Other Time. Compare Multiple Timeframes (this week, four weeks, thirteen weeks, and yearto-date) 8

9 MANAGING THE MARKETPLACE Compare Year over Year Volume Trends by Key Account. Scatter, then list customers who are receiving price breaks they don t deserve. 9

10 MANAGING THE MARKETPLACE THE BASICS (SALES, REVENUE, COST, MARGIN) Penetration and Trial. How quickly is the marketplace adopting a new product? Customers who haven t tried the product. Customers who purchased the product at least once, but aren t buying regularly. Customers who are consistently buying the new product. List customers who aren t buying the new products. 10

11 MANAGING THE MARKETPLACE PROMOTIONS Invoices tell the tale of promotional performance. Sales and margins are influenced by price, but this equation changes over time and from one customer to another. A graphic can show, for each customer, when a product is priced too low for profit or too high for volume or too frequently to keep the consumer s interest. With this kind of information, a manager can optimize promotional mix: Depth / Frequency Analysis. Track promotional efficiency for one product in one account over time. (This can done at any level). Drill in on any date range to view details. Watch for Product Cannibalization. Did the promotion take away from other product sales or have real impact on overall volume? 11

12 MANAGING THE MARKETPLACE CUSTOMER DEVELOPMENT AGREEMENTS Many business costs can t be found on invoices. Instead, they reside in marketing agreements, payroll records, advertising budgets, warehouse records, etc. MAX can spread any costs and revenues (e.g. CDAs, CMAs) to the per unit/customer/product level for the customers and products in any grouping, by any business dimension, for any timeframe. Typical Applications Distribute marketing expenses (ad costs, rebates to customers, etc.) to a group of customers and/or products over a particular timeframe. Track incoming rebates from the manufacturer. How much am I making per unit of sales after all revenues and expenses, from the whole company all the way down to the individual customer? 12

13 MANAGING THE MARKETPLACE MERCHANDISING - Space & shelf management MAX can integrate survey and syndicated data on shelf space to show the effect of changes in space allocations on sales results. As always, the information is always current and available on demand. Typical Applications Monitor inventory / allocation of any / all SKUs by store or any roll up such as chain or channel. Spot trends and possible problems. Determine real sell-through and profit for presentations to retailers. Track pricing throughout off-premise chains and at store level. Correlate causal changes in shelf space or position with changes in results of sales, volume, revenue, cost or margin. Evaluate from any perspective such as chain, channel or territory. Monitor days on hand / out of stocks (own and competitors). Identify opportunities for increased sales. Optimize product turns. Compare. Space Vs Volume / Revenue / Margin (facings / cubic / square feet / linear feet). Here we introduce a new kind of data (shown in pink) that tracks business conditions or causals. 13

14 MANAGING THE MARKETPLACE MERCHANDISING - Displays MAX integrates information about number, type, and volume on display, as well as competitor information to help managers monitor display activity and control performance. Typical Applications Compare your displays to competitor displays. Obtain and maintain the market share. Measure the effect of displays on sales volume, revenue, and margin. Compare Shares of Volume on Display and Number of Displays. Trend. Sales Volume Vs Display Activity. 14

15 MANAGING THE MARKETPLACE MERCHANDISING - Marketing equipment (capital, parts, labor) Many bottlers keep information from their asset, maintenance, and repair operations. MAX integrates this information to provide a clear picture of the true cost of service. MAX delivers the right answers on demand to reduce parts, labor, and travel costs, optimize quality of service (response time, time to service completion, etc.) and more. Typical Applications Eliminate assets, locations, or customers that cost too much money...sooner rather than later. Drill down on repair costs; Identify the sources of high parts costs, labor costs, or travel costs. Score mechanics/technicians by their productivity (hours/work order, no. of work orders, etc.). Improve response times to increase customer satisfaction and reduce down time. Analyze Repair Costs and Depreciation by Equipment Type. List Assets or Customers with the Most Repair Calls. This data type shows the number of times something happens, e.g. number of work orders. 15

16 MANAGING THE MARKETPLACE MERCHANDISING - Point of sale materials As a bottler, you probably invest heavily in Point of Sale (POS) materials. As with any investment, savings can be achieved by careful management. MAX keeps sales history together with history of placement types, requests, dates, quantities, sizes, locations, costs, competitor information, and more. The result is a moving picture of net value contribution of merchandising investments. Typical Applications Maintain and grow your share of POS in the market. Identify customers who do (and don t) deserve more POS investment by correlating POS spending with overall revenue and margin. Compare POS with Competitors. Do we have the market share? Total number of pieces. Our share of the total. POS by Customer Site. Compare Quantity Vs Cost Vs Overall Margin. 16

17 MANAGING THE MARKETPLACE MAKING THE BEST CASE FOR RETAILERS Price - to - consumer information is frequently available through internal surveys or third - party or syndicated data providers. MAX matches these up with bottler invoice data to provide a view of retailer profitability or the best case. Typical Applications See products flows and competitive shares. Win the contest for feature ads, space, and attention. De - list losers before your customer does. Compare Retail Quantities, Prices, Revenue, Costs, and Margin by Product. 17

18 MANAGING THE MARKETPLACE COLLECTIONS Not only does MAX provide the information and tools to make more money, but it can also enable bottlers to collect the money that s due to them when it s due. MAX seamlessly integrates A/R information and sales information to show A/R balances, invoice amounts, paid amount, oustanding balance versus revenue or margin, contact information, etc., by any perspective (customer, sales representative, region, channel, etc.). Typical Applications Compare A/R balances to revenue, margin, or any other sales measure. Make others (sales representatives, district managers, etc.) aware of and responsible for past due accounts. Quickly identify the riskiest accounts and provide all information required for immediate action. Elevate A/R to a Key Productivity Indicator status within the company, including it in executive targets, sales management performance evaluations, etc. Compare A/R Balances by Sales Representative. Are outstanding balances proportional to revenue and margin? How many days past due are this sales rep s accounts? List the worst overdue invoices along with contact information necessary for immediate action. 18

19 MONITORING OPERATIONS EFFICIENCY DELIVERY Delivery efficiency means getting the most from drivers, finding the right delivery frequency for all customers, and keeping personnel and trucks at a minimum to decrease costs. MAX uses data from load sheets, handhelds, and invoices (route settlement) to track average volume, revenue, and margin per drop and more. Typical Applications Continuously certify operational productivity. Enable managers to perform day-to-day, day of week, trend and outlier analysis or drop size efficiency. Optimize delivery operations for maximum productivity of human and capital resources. Certify / reward managers for productivity performance. Coordinate merchandising with delivery schedules. Adjust drop size to minimize feature ad pre-loading. Correlate missed stops with sales trends. Reduce missed sales opportunities. Test, then list, by Sales Route, those customers with low MC per drop (less than $20). 19

20 MONITORING OPERATIONS EFFICIENCY SUPPLY CHAIN Bottlers keep data about production schedules, orders placed, and inventory levels. MAX integrates all of these into a comprehensive view of the supply chain, tracking ordered quantities, days of supply, projected inventory, actual inventory, received quantities, etc., for every single product. So, you can see exactly how much of every item is currently in-stock, and will be in the warehouse tomorrow, next week, or next month. Typical Applications See the product pipeline daily. Measure the effects of promotions on inventory. Optimize for JIT on both purchasing and distribution. Show the effect of push stocking on carrying costs. Spot stock shortages before promotions start. Stocking Trends. How may days of supply do I have? When should I order more? 20

21 MONITORING OPERATIONS EFFICIENCY LOADING Every load shift manager needs to match up manpower requirements with orders from the trade, and to load vehicles as efficiently as possible, while maximizing the safety of his load crew. MAX uses data from load sheets, payroll, HR files, and other sources to track head counts, load out, load in (returns), total delivered, labor hours, safety incidents, etc., so that load managers can make their crews more productive. Typical Applications Score / reward load management efficiency. Match up vehicle loads and load times to vehicle capacity. Reduce re-loads and mis-loads / load crew labor costs / net cost per loaded case. Compare Loading Efficiency by Warehouse. Compare Load Out to Load In (Returns) by Vehicle, Route, Warehouse, etc. 21

22 MONITORING OPERATIONS EFFICIENCY VEHICLE TRACKING Repair and maintenance records, capital asset files, and fuel cards provide rich information on the efficiency of vehicles. MAX can track the entire cost of fleet operations such as depreciation, service costs, and maintenance... even fuel mileage, to show where and how bottlers can reduce those costs. Typical Applications Monitor mileage per driver and truck. Eliminate high-cost vehicles...sooner rather than later. List, then sort vehicles by % change in fuel efficiency. Which delivery vehicles show unreasonable changes in miles/gallon? In a fleet of more than 600 vehicles, some show up with numbers that require explanation. 22

23 FULL SERVICE / FULL LINE VENDING Full Service / Full Line Vending introduces introduces new business processes and even greater complexity to bottler operations. From accounting files, delivery invoices, and repair and maintenance records, MAX can track cash receipts, commissions, number of visits, collection and repair information, and Volume, Revenue, and Margin for additional product lines. Typical Applications Analyze any product or product category by volume or profitability. Obtain the facts to effectively negotiate customer commissions. Improve delivery efficiency to reduce costs. Identify potential problems with over / short... sooner rather than later. Compare Quantity, Revenue, and Margin by Product Category, Down to the Asset Level by Day, Week, Month, etc. Compare Revenue to Commissions for Any Asset or Customer. 23

24 FULL SERVICE / FULL LINE VENDING Identify Customers with Low Revenue Per Visit. Can we service those customers less often? Test customers based on any criteria, for example, Revenue Per Visit less than $40. MAX gives results in just seconds. No product is more than 50% depleted. Solution: Cut down on the number of visits to increase Revenue per Visit. 24

25 GETTING TO DEAD NET MARGIN MINDER MAX BRINGS IT ALL TOGETHER True net value is the net result of all revenues and costs. Perhaps the greatest value of MARGIN MINDER MAX is its ability to bring all of these together in a comprehensive accounting of true net value contribution every day, for the individual customer up to the enterprise. Now, everyone who needs to know can see instantly where and how activity affects profit and growth. DEAD NET Sales Distribution Operations Field Marketing CUSTOMER Full Service / Full Line Asset Repair & Maintenance 25

26 GETTING TO DEAD NET THE DYNAMIC P&L The Dynamic P&L of true net value delivers volume, revenue, costs, profit, and productivity... from the customer, product, or asset up to the enterprise. It is updated and available every single day. Entire company... The P&L compares any two time periods as well as actual vs. budget values for any business activity. The result is true net value from any perspective. MAX can even integrate transactional data with incident counts (e.g. invoice counts) and causal data (e.g. population) to calculate key productivity measures, such as per cap, per employee, per hour, etc. 26

27 GETTING TO DEAD NET customer... product. 27

28 MARGIN MINDER MAX CAPABILITY SUMMARY The MAX Productivity Tracking System... Bolts-on to any data processing system. Scales to many billions of data points, thousands of users. Integrates and organizes transactional and causal data from many business functions into a coherent, whole enterprise productivity tracking system. Provides a rich suite of tools for activity data interrogation, visualization and analysis. Provides objective monitoring of value contribution at all points, for all persons, functions and processes. Supplies information in time to affect outcomes. Delivers anywhere, anytime. 28

29 TESTIMONIALS Nine of the top ten soft drink bottlers in North and South America utilize Salient products and services. See what some of our clients are saying: On the second working day of the month, we know exactly how our (previous) month was as far as margin was concerned. Volume used to be king. It s not anymore. It s profitability and margin. That s really what counts. Margin Minder is a great product. It s quick. It s easy. It s just virtually maintenance free. Would I recommend it to others? In a heartbeat. Dan Welsh, Controller Pastega Beverage. (Pepsi Bottler) Corvallis, Oregon I will say that we believe our margins, particularly in the cold bottle channel, have grown over a dollar a case since we implemented Margin Minder, and at least some of that has to be attributable to the fact that we re getting immediate results-oriented feedback on our pricing decisions. Brad Braun, Chief Financial Officer PepsiAmericas. Memphis, Tennessee Margin Minder makes every one of our managers smile a lot more, not necessarily because their sales are up, but because they know why they are or are not and can do something to change things based on useable, immediate data. Andrea Lutes, System Administrator Weinstein Beverage Company. (Pepsi and Cadbury Bottler) Wenatchee, Washington We have to be able to get new products to market in a hurry, and then just as quickly we have to be able to determine if the product is going to be successful. We have to identify its strongest niches and be able to specifically market it to those areas. The Margin Minder system is a great tool for interactive scorekeeping, and it keeps us from making expensive mistakes. Allen Savasta, Director of IS, Oasis Foods Company. Hillside, NJ It s revolutionary! The real value added is how it interfaces with our data warehouse. We could always use a spreadsheet to distribute and analyze the data from our warehouse, but it was very cumbersome. Salient made the whole process invisible. It s a real client-server system with online, real-time information. Matt Soileau,VP of Operations Silver Eagle Distributing Co. (Anheuser-Busch Distributor) Houston,TX 29

30 Salient Corporation 203 Colonial Drive Horseheads, NY USA phone: fax: salient.com 2008 Salient Corporation

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32 Salient Corporation 203 Colonial Drive Horseheads, NY USA phone: fax: salient.com 2008 Salient Corporation