Profit Improvement Management System |
Know Where You Make Money, Know Where You Loose Money with Trackmax Solutions Profit Improvement Management System.
Trackmax Profit Improvement Management System (PIMS) users report a minimum increase of 50 basis points improvement to their bottom line within the first 12-18 months of system implementation. To have the same impact, a $100 million foodservice distributor would need to generate $20 million in NEW sales!
PIMS establishes a new financial metric for measuring performance—‘True Profit’. It is the only profit metric that provides layers of profit improvement opportunities, delivers a complete picture of profitability at the product SKU, product category, manufacturer and customer levels and uniquely stratifies them based on contribution to business. As a result, significant financial and competitive advantages in the areas of operational cost reduction and improved efficiency are realized.
Trackmax Solutions Insight is embedded into PIMS, allowing users to “point, click and drill down” into data in real time. (Data updates can be done nightly.)Users quickly see their competitive strengths and account penetration opportunities, and clearly understand where to leverage their advantages through go-to-market sales and marketing strategies focused on sales growth.
PIMS has seven inter-related modules that leverage its single database. Here is how it works.
1.Contract & Rebate Management:
Trackmax Solutions’ Earned Income Profit Optimizer (EIPO), the foodservice industry's leading contract and rebate management tracking system, is the foundation of PIMS. Its sole focus is optimizing manufacturer earned income by capturing lost trade spend dollars. Manufacturer earned income on existing sales is increased through tighter controls on accounts receivable, days outstanding are reduced and cash flow improved.
2.Category Management:
The Category Management module provides an
objective start-to-finish process for evaluating, managing, and growing
sales for the best ‘True Profit’ product categories, manufacturers, and
SKUs. It identifies which customers and SKUs are profitable on a ‘True
Profit’ basis, and which ones are not.
3.Manufacturer 'True Profit' Management:
The Manufacturer ‘True Profit’ module identifies ‘True
Profit’ contribution from manufacturers and details specific
contribution components—price changes, promotions, product deletions,
conversions, new SKUs, etc. Using a manufacturer scorecard analysis,
within seconds, a user can understand how product category management
decisions financially impact their business.
4.Customer 'True Profit' Management:
The Customer ‘True Profit’ module identifies direct selling
opportunities to increase targeted account penetration. It identifies
and ranks best customers, customers not buying a product category that
generates a solid ‘True Profit’, and under penetrated customers.
5. DSR 'True Profit' Management
The DSR ‘True Profit’ module highlights and
ranks DSRs based on their ability to generate ‘True Profit’ sales and
reports findings by District, Region, and Total Street sales. Rankings
can be used to compare DSRs and determine ‘True Profit’ benchmarks that
can serve as the basis for training and compensation
6. Void Matrix Management:
The Void Matrix module identifies all sales opportunities
that exist within a distributor's customers, contracts, bids, regions,
districts and DSRs. This action tool allows for targeting sales growth
by product category, manufacturer and SKU. Within minutes, users know
which customers are buying one product category, but not another (e.g.,
hamburger patties, but not chicken tenders; frying oil, but not French
fires or appetizers, etc.). Information can be gathered and evaluated
broadly and by account type. The Void Matrix module also clearly
identifies which contract customers are not buying spec'd items from a
given manufacturer.
7. Activity Based Cost Management:
The Activity
Based Cost (ABC) module provides the flexibility to easily and quickly
customize actual costs for labor, SG&A, cost of fuel, cost of
capital and other areas. These ABC drivers are readily available from
warehouse management and ERP systems. The Activity Based Cost module
allows for an easy tie-out to the distributor's General Ledger, ensuring
data consistency.
PIMS Delivers 'True Profit'
'True Profit’, or real contribution to margin, is defined as: the profit generated after the cost-to-serve the customer is deducted from the gross profit (which includes all manufacturer earned income).
PIMS uses Activity Based Cost (ABC) drivers that are easy to understand and implement (e.g. inventory investment and turns, case cube, drop size, etc.) to accurately measure the ‘True Profit’ generated by both the customer and products purchased.
Facebook
Linked In
Youtube