Randy MacLean works in distribution. His perspective on five things customers want and how to deliver them is applicable anywhere in the animal health supply chain. He believes customers are affected and influenced almost exclusively by: Availability On-time delivery No product failures Smooth (and short) interactions Acceptable price Source: Modern … [Read more...]
Be aware of accounts that eat your lunch
Randy MacLean explains distributors’ challenges of big accounts and the financial consequences of servicing them. It is a familiar story of top-line revenue versus cost-to-serve, fixed-cost conundrums that have long-been prevalent in animal health markets. It is also a situation common to livestock veterinary clinics and retailers that is exacerbated by ongoing consolidation … [Read more...]
Build more profitable relationships with small customers
Pareto’s economic law or, the 80/20 rule, when applied across account analytics often places good, small customers into a “call less often” category. In essence, we call on the 20 percent of the customers whose historical contribution was 80 percent of the revenue. Source: Modern Distribution Management, February 2, 2016. Making money with smaller customers is possible, if … [Read more...]