Max. Salient Margin Minder. Integrated Enterprise Perfromance Management System. Margin Minder MAX

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1 Salient Margin Minder Max Integrated Enterprise Perfromance Management System Margin Minder MAX

2 About Salient Salient Corporation makes very large scale in-memory intelligence technology for ad hoc data interrogation, visualization and root cause analysis. The company provides continuous audit, performance monitoring and forensic applications for business, health care, education and government.

3 Salient Margin Minder Max Integrated Enterprise Perfromance Management System Table of contents Introducing Margin Minder MAX 4 How Margin Minder MAX Works 6 Managing the Basics - Sales, Revenue, Cost, Margin 8 Sales Performance Comparisons8 Sales Performance Trends 10 Pricing/Finding Outliers 11 Setting Sales Expectations 12 Market Penetration 13 Optimizing Price-Off Promotions 14 Depth/Frequency Analysis 14 Product Cannibalization 15 Controlling Off-Invoice Spending 16 Merchandising 17 Shelf Space 17 Displays 18 Point of Sale Materials 19 Making The Best Case for Retailers 20 Improving Collections 21 Managing Inventory - Supply Chain 22 Managing Assets 25 Integrate Anything 27 Getting to Dead Net Profit 28 Going Beyond Profit - Real Productivity 29 Testimonials 30

4 More often than not, investments, activities, and individual performers in sales and marketing, distribution, services and other operations don t connect in any visible way to bottom line performance.

5 Introducing Margin Minder MAX Making the connection...in real time. The Margin Minder MAX system puts the right information where it counts, when it counts, directly in the hands of the people who make the daily decisions that determine company profitability. Margin Minder MAX is based on Salient s UXT high performance data exploitation system. UXT tracks commercial and operational data in real time. It integrates billing, syndicated, survey, supply chain and causal information and then organizes these data streams into a comprehensive, dead net accounting of the activity of the enterprise. Performers, managers and executives all get a never-before-possible capability to correlate their own actions to profit, growth, efficiency and productivity. MAX lets them see the connection graphically, continuously, in real time. Margin Minder MAX Tracking Retail Value Performance with Store Minder MAX 5

6 HOW MARGIN MINDER MAX WORKS MAX lets managers and others package intelligence on the fly by pointing and clicking on tabs, rows or graphics. They can start from anyplace and go anywhere... drill into territory, brand, key account (in any order)... zoom in on any month, week, day, etc. Here is an example of a graphical drill to find brand distribution voids for six months. Just double-click to list customers who didn t buy a particular product. Another click reveals which products they did buy. On the following pages, you ll see other examples that represent how everyone can use MAX to find exactly the information they need to achieve maximum performance. 6 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

7 Tech Talk: Margin Minder MAX is a tightly integrated client /server business activity monitoring (BAM) application that bolts on to several back office processing sources (no IT changes are necessary). User access is from anywhere via TCP/IP LAN, WAN and Net. Its data engine /server is highly scalable to billions of transactions without compromising speed or granularity. It exploits all means compression, n-dimensional grid indexing, SMP and MPP and more to deliver maximum intelligence in minimum time to hundreds or thousands of on-line users. It integrates transactional and causal data from any source. Its Minder client is a user driven intelligence assembler and presenter. It operates on both fat and thin Windows clients and reports in real time. Sales Accounting Systems Other Transaction Processing Systems Financial Systems Virutally Any Other Source! Margin Minder MAX Load & Go (optional) MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 7

8 MANAGING THE BASICS - Sales, Revenue, Cost, Margin Invoices convey the history of the marketplace. MAX organizes every fact so that every day sales managers can find and act on the opportunities faster than ever. Here is a sampling of several bookmarks, or starting points that a typical manager might look at to begin his or her day: Some examples of what you can do: Compare key indicators across channels, markets, key accounts, products, etc. Compare any one indicator across several time-frames. Trend performance over time. Find performance outliers by price and volume (or any other measures). Inspect new product penetration and trial by territory and channel. 8 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

9 Compare Multiple Timeframes (this week, four weeks, thirteen weeks, and year-to-date). Compare Sales Reps by Sales Revenue in each Category. Highlight over and under achievers. You set the criteria, for example, here green indicates Sales Revenue growth (>10%). MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 9

10 MANAGING THE BASICS - Sales, Revenue, Cost, Margin Compare Year over Year Volume Trends by Category, Product, Sales Rep, or any other way. Trend Sales Volume, Sales Revenue, and Sales Margin (Profits). In one second, smooth the graph to see general trends. 10 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

11 Plot, then list customers who are receiving price breaks they don t deserve. Optimize Pricing. What are the best price points for french fries? Double-right-clicking lists french fries in those ranges. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 11

12 MANAGING THE BASICS - Sales, Revenue, Cost, Margin Set expectations on the fly - who or what passes or fails. For example, products with gross margin over, say, $50. Double-click to list products that aren t meeting margin expectations. 12 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

13 Penetration and Trial. How fast is a new product getting to market? 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. Point and click to list the customers who aren t buying. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 13

14 OPTIMIZING PRICE-OFF 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. Some examples of what you can do: Offer promotions at the right frequency to keep consumers interest. See when a product is priced too low for profit or too high for volume. Measure a promotion s affect on regularly-priced products. Depth / Frequency Analysis. Track promotional efficiency for one product in one account over time. This can be done at any level. In less than a second, drill in on any date range to view details. 14 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

15 Product Cannibalization. Evidence of cannibalization. Promotion lifted total quantity of sales and did not cannibalize other packages. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 15

16 CONTROLLING OFF - INVOICE SPENDING 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 to the per unit/customer/ product level for the customers and products in any grouping, by any business dimension, for any timeframe. Some examples of what you can do: Distribute marketing expenses (ad costs, rebates to customers, etc.) to a group of customers and/or products over a particular timeframe. Measure recoveries by brand, package, SKU, etc. View True Profit Performance at Any Level. Entire company One SKU (per unit) 16 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

17 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. Some examples of what you can do: Monitor allocation of 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. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 17

18 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. Some examples of what you can do: 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. 18 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

19 MERCHANDISING - Point of sale materials Point of Sale (POS) materials can represent a significant investment, but 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. Some examples of what you can do: 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. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 19

20 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 invoice data to provide a view of retailer profitability or the best case. Some examples of what you can do: See product 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. 20 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

21 IMPROVING COLLECTIONS Not only does MAX provide the information and tools to make more money, but it can also enable businesses 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, outstanding balance versus revenue or margin, contact information, etc., by any perspective (customer, sales representative, region, channel, etc.). Some examples of what you can do: 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. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 21

22 MANAGING INVENTORY - Supply Chain Most businesses 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, shipped quantities, out of stocks, days of supply, projected inventory, actual inventory, received quantities, etc., for every single product. Some examples of what you can do: Spot stock shortages to reduce potential lost income. See the product pipeline daily. Know exactly when to order more. Show the effect of push stocking on carrying costs. Optimize for JIT on both purchasing and distribution. Improve delivery efficiency to reduce costs. Trend Quantity Shipped, Quantity Ordered and Potential Lost Revenue. Simply draw a box about any area of concern to find out more. 22 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

23 Out of Stocks. Quickly identify locations with too many out of stocks. Drill down on any location and view out of stocks by product. Stocking Trends. How many days of supply do I have? When should I order more? MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 23

24 MANAGING INVENTORY - Supply Chain Compare Load Out to Load In (Returns) by Vehicle, Route, Warehouse, etc. Optimize Delivery Efficiency. Set efficiency expectations on-the-fly. For example, test, then list, by Sales Route, those customers with low MC per drop (less than $20). 24 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

25 MANAGING ASSETS Many businesses keep information from their asset, maintenance and repair operations. MAX integrates this information to provide a clear picture of the true value and cost of assets. Some examples of what you can do: Match capacities to volume. Track all asset costs, e.g., depreciation, service and repairs, etc. Eliminate assets that cost too much money sooner rather than later. Optimize quality of service (response time, down time, etc.). Compare Number of Work Orders, Cost of Repair and Depreciation, and Repair Time (Total and Per Asset) by Merchandise Type. Instantly, break down any piece of data into its component parts. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 25

26 MANAGING ASSETS List, then sort vehicles by % change in fuel efficiency. For example, in a fleet of more than 600 vehicles, some show up with numbers that require explanation. 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). 26 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

27 INTEGRATE ANYTHING The previous pages show some examples of activities that MAX can track and integrate; however, these are just a few of the possibilities that MAX introduces to business performance management. MAX can track any type of data (volume, money, time, incident counts, business conditions or causals) from any type of activity (payroll, distribution, purchasing, manufacturing, warehousing, service, etc.). Simply put, if you collect it, MAX can use it. MAX integrates any or all of this information from any source to show how all activities affect sales and each other and ultimately bottom line profitability. MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 27

28 GETTING TO DEAD NET PROFIT Dead net profit is the net result of all revenues and costs from every business activity. Margin Minder MAX brings all of these together in a comprehensive accounting of dead net profit contribution, however you define it. The result is available 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. Gross Revenue (whatever you call it) Cost of Goods & Services Discounts Deals Promotions Rebates Recoveries etc. Gross Profits (however you define it) Dead + = Net Profit All Other Expenses Sales & Distribution Advertising & Marketing General Administration...any others + All Other Revenues (whatever they are) 28 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

29 GOING BEYOND PROFIT - Real Productivity Because MAX integrates granular data from all your business activities, it allows you to see dead net profit at every level, but more than that, it shows how these transactional values relate to business constraints and conditions. The result is the ability to measure real productivity (e.g., per cap, per drop/stop, per hour, per employee) for the individual customer, product, etc., up to the enterprise. For example, a P&L for the entire company or one customer. Dead net profit & growth Dead net productivity MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 29

30 TESTIMONIALS Our Sales Managers are now about 100% more effective with Margin Minder. Aaron Dym, Controller, MIS W&L Sales (Coors distributor), Harrisburg, Pennsylvania A GREAT TOOL FOR INTERACTIVE SCOREKEEPING 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, New Jersey THIS IS PHENOMENAL I can t think of what we don t track with UXT (MAX). With about 13,000 customers and 60 drivers, we now have real-time control of our profit and loss activities enterprise wide. We especially like the ability to monitor profit performance of individual sales people, and recently decided to base part of their compensation on margin delivered. This is phenomenal. Ellen Morgan, Data Systems Manager Royal Crown Bottling Corp., Evansville, IN A SYSTEM THAT IS EASY TO USE, MAKES THE DATA EASY TO UNDERSTAND We want our sales people selling, we don t want them pounding on a spreadsheet to get data they don t want or can t use. And they re not analysts. They want a system that is easy to use, makes the data easy to understand and does all this very quickly and visually. Margin Minder is the single best tool we have for monitoring supermarket sales. Steve Gottlieb, Vice President of Planning and Financial Reporting Carvel Ice Cream Bakery, Farmington, Connecticut A TOOL TO WATCH PROFIT & LOSS IN REAL TIME We definitely saw payback on the product within the first year, no question about it. Salient is used as a control monitor to immediately solve problems. Between 10 remote warehouses, plus a large distribution center, Salient brings it all together in the form of a sales tool for branch locations and at the corporate headquarters it is a tool to watch profit and loss in real time. Bill Barten, IT Manager Carolina Beverage, Salisbury, North Carolina 30 MARGIN MINDER MAX Real-Time Integrated Enterprise Management System

31 In summary, Margin Minder MAX... Bolts on to any ERP, data warehouse, accounting or departmental data source. Scales to fit your company, no matter how big it is. Integrates and organizes all of the information you collect. Provides graphical, real-time monitoring of value contribution at all points, for all persons, functions and processes. Supplies feedback in time to affect outcomes. Delivers extremely fast ROI, with operating margin efficiency improvement of 3% or better. Call Salient Corporation for more information now ( ). Margin Minder MAX MARGIN MINDER MAX Real-Time Integrated Enterprise Management System 31

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