2020 Vision
The Future of High-ProfitWholesale / Distribution Companies
The Coming Future of Distribution
• By 2020, the face of wholesale distribution will have changed
• the stratification of players will have become extreme:– top-profit producers: 10%+ NBT– margin erosion will take 3%–4% off NBT– today's tier-one companies destined for
bankruptcy or acquisition
What Will Be Different
• top-tier companies will run with a different operating philosophy
• they will use big data to set priorities and to allocate effort and resources
• they will be much more integrated with their vendors and customers
• they will have replaced much of their current business model
• accountability measures and incentives will be common and aligned throughout the company
• the need for continuous improvement will drive focus on deltas (gains)
• the C-Suite will have: CEO, CFO, CSO, CPO, CIO• every level of the company will understand
and master triage (prioritization)• will have a clearly articulated business model
What Will be Different (cont'd)
Mission of 2020 Vision
• Develop an organization to identify companies lead by the most forward-thinking people, and provide guidance, education and certification of those companies, and the consultancies that guide them.
• Celebrate the 2020 companies and share the strategies and tactics that make them successful.
2020 Vision
• Develop a vision of the success drivers of a top-tier wholesale distribution company in the year 2020.
• Build an organization to help communicate the success elements, and to certify companies that have them in place.
• Certify the consultancies and advisors qualified to help companies implement the elements.
2020 Vision (cont'd)
• Benchmark and publicize the performance levels and standards of the top-tier companies.
• Celebrate and publicize the success of the 2020 Vision companies.
• Help the financial community understand, recognize and prioritize 2020 Vision companies.
2020 Benefits
• industry-leading profits / cash flow• status / recognition for company leaders• higher stock value• recognition by investors• recognition by banks
2020 Companies Will...
• be executing on clearly-defined and articulated business models
• have defined business strategies (not everything to everyone)
• use big data to define strategy and allocate effort / resources
• have a leadership structure that elevates profit management and improvement (CPO)
2020 Companies Will... (cont'd)
• have widespread adoption of Quantum Profit Management
• have LIPA for granular profit measurement• have strategic pricing / margins• have company-wide profit-based incentives• have customer / market demographics• have data-driven marketing plans
2020 Companies Will... (cont'd)
• be digitally integrated with their dominant suppliers and large-profit customers
• be executing on a strategy to communicate digitally
• be marketing online• train their customers to make them more
profitable• have a communication program for millennials
2020 Companies Will... (cont'd)
• have an education program to develop personnel
• be top-tier in benchmarks• be executing a plan to increase the company's
valuation• have a comprehensive feedback mechanism
to prioritize drive continuous improvement
2020 Metrics
• NBT above 10% (higher in certain sectors)• NBC/FTE 2x or more of industry average• sales comp below 50% NBC• others relative to market or other 2020
companies
20/20 Certification
• conceptual framework• objective standards• certification authority• qualified consultants / instructors• certify 2020 companies
20/20 Concept Communication
• industry thought / opinion leaders• APIC speakers• top-performing companies• high-visibility companies• media• educational institutions• financial institutions
2020 Advisory Board
• Tom Gale• Steve Epner• Brent Grover• Al Bates• Dirk Beveridge
• Barry Lawrence• Jonathan Byrnes• Lindsay Konzak• Bruce Merrifield• Guy Blissett
Timeline
• concept meeting• develop initial advisory team• gather, narrow and refine base elements of
20/20 company• document measurable objective standards• develop "how to" plan for executing and
achieving each element
Timeline (cont'd)
• develop branding / publicize concept• certify partners• announce / publicize companies certified as
2020 companies• announce awards for companies that meet
standards
Notes
• for the top performers, not the lowest common denominator (or everyone)
• could provide benchmarks
2020 VISION
2020 Vision