How to Take Your Warehouse Wireless
Think about your warehouse for a moment. Does it run efficiently or do you make
up for inefficiency with more staff than necessary? "Throwing people at the problem"
will become more and more difficult as we continue to experience a shortage of qualified
labour.
There is another approach, as examined in this article from CIO magazine. By analyzing
your current warehouse-related business processes and integrating technology (some
of which you already own), major efficiency gains and cost savings are not only
possible but likely. Full story
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Dear Subscriber,
Welcome to "In Black & White," your management update from F.H. Black & Company.
"In Black & White" is a collection of relevant articles reflecting new insight and
new ideas for business management on topics critical to the success of your business
and in our areas of experience. Should these articles generate questions or
stimulate interest in implementing any of the ideas presented, please feel free
to contact us at your convenience and our experts will be pleased to help.
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Management Excellence -
Submit your answer and win!
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Last month's Answer: After discounting the sales price by 10%, we must increase
unit sales by 67% to generate the same gross margin. Many managers find these numbers
very surprising and are often convinced that discounting is an effective strategy
to increase sales. While it may help you move more units, the question is will your
sales team be able to sell enough? 67% is a massive increase! More often than not,
the answer is we cannot increase sales volume enough to replace the lost per-unit
margin.To see the detailed scenario from last month, and the entire math behind
the answer, please refer to the February issue
The Winner: Last month's winner was Hi Cube Storage Products (http://www.hicube.com)
For more than 20 years, Hi- Cube Storage Products has been solving storage problems
for businesses of all sizes, from distribution centers, manufacturing facilities,
and lumber yards to hospitals, museums, and government offices.
This Month's Management Excellence challenge:
The Scenario: Despite being upset that her strategy to discount products
by 10% was not approved, your sales manager is not discouraged. She comes back to
you and suggests that you conduct a marketing campaign. She wants to start with
a direct mail advertisement, followed up with a radio commercial and then an open
house complete with a door prize. Her estimates are that she can accomplish all
this for $10,000 and expects to attract 100 new customers.
The Facts: Your company's gross margin is about 40% and net profit margin
approximates 2%.
The Question: If your sales manager is correct in her estimates, what gross
sales volume must these new customers contribute for you to recover your marketing
investment? For bonus marks, what does this answer tell you about customer service
and customer satisfaction?
The Prize: Email your answers to management_excellence@fhblack.com.
All correct respondents will be entered into a draw for a copy of: New Ideas from
Dead CEOs: Lasting Lessons from the Corner Office (Hardcover)by Todd G. Buchholz
(Author).In selecting great ideas from dozens of entrepreneurial CEOs, Buchholz
insisted that these business pioneers had to be innovators, teachers of lessons,
interesting-and gone from this earth. All nine CEOs represent household names and,
some may argue, overexposed brands. His subjects include: A. P. Giannini, founder
of the Bank of America, Sam Walton, Thomas Watson (Sr & Jr), Mary Kay Ash, Estee
Lauder, David Sarnoff, Ray Kroc, Akio Morita & Walt Disney.
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Data is complex and inadequate,
say CFOs
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A common topic of discussion here in "In Black & White" is management reporting.
So much of business success depends on rapid access to reliable information
by the right management team member. Our focus on this topic is not by accident:
- When we meet with new clients who are considering changing accounting systems, they
inevitably identify access to information as one of the major deficiencies of their
current system.
- During a recent Microsoft conference, they indicated that their research indicates
the number one reason for changing accounting software is access to information.
- A recent survey by CFO Research found that responding CFOs indicate the number one
item the finance department can make is "Improve Management Information"
(click to review their findings).
You can hardly open a business magazine without hearing about "Business Intelligence"
yet it seems very few businesses have found a practical way to achieve it. It can
be much easier than you think & you may not need to change your entire financial
system!
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Professional Development
for Wholesale Distributors
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Are you looking for training for your team in the fundamentals of Inventory Management?
How about how to get the most out of your existing ERP system? Training on these
topics and many more are available for you & your team.
F.H. Black & Company offers 1 hour webinars several times a month on numerous topics
of specific interest to wholesale distributors. And we are always adding more topics!
Don't see a topic you are interested in? Let us know and we will see if we can add
it for you!
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Tips for Windows XP Professional
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Want to increase your efficient use of technology? Sometimes it can be the little
things that add up!
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