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Distributor Pl  Roi   Presentation Template
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Distributor Pl Roi Presentation Template


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Distributor ROI

Distributor ROI

Published in: Business, Technology

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  • 1. DISTRIBUTOR P&L & ROI Input Distributor Name here…
  • 2. Why are we doing the P&L and ROI analysis?
    • As a business partner, we would like to understand the elements/factors affecting distributor’s profitability
    • For analysis and action planning, aimed at improving distributor’s business
    • Understand and agree on the role of both supplier and (distributor) in ensuring and maintaining viable business.
  • 3. Distributor’s Profitability Who is accountable?
    • Both (Distributor) and Supplier are responsible
      • Long-term partnership
      • Fact-based basis for agreeing on investments in the business
      • Supplier able to direct focus and efforts of (Distributor’s) organization
      • (Distributor) ultimately responsible for profitability of its business, but Supplier has a supportive/guiding role
  • 4. Roles
    • Support Distributor’s profit objectives
    • Collaborate with Distributor in development of best deployment, organization and operations
    • If needed, drive the process
    • Regular review of performance (put structure)
    • Candid and fact-based
    • Trust! 2-Way
    • Share P&L data (e.g., cost structures, salaries, DSO, etc.)
    • Open-mind in reviewing together with Supplier how to better manage resources/expenses to drive business
    • No surprises
    Supplier Distributor
  • 5. Basic tools that we will use..
    • Profit & Loss Statement (P&L)
    • Return on Investment (ROI)
  • 6. Profit & Loss Statement
    • Definition:
    • A Profit and Loss Statement (P&L) is a standard financial document that summarizes a company's revenue and expenses for a specific period of time, usually one quarter of a fiscal year and the entire fiscal year.
    • Distributor P&L:
    • Provides level/percent of profit Distributor gets from a specific partnership with a Principal/Company.
  • 7. Return on Investment (ROI)
    • Definition:
    • ROI measures how effectively the company uses its capital to generate profit ; the higher the ROI, the better.
    • This is one of the most important profitability metrics. ROI shows how much profit a company earned in comparison to the total amount of capital the owners invested in the company.
    • A Distributor that has a high return on investment is more likely to be one that is capable of generating cash internally.
  • 8. Benefits to Distributors
    • P&L and ROI analysis can deliver significant efficiencies and productivity
      • When looking for improvements: focus on big ticket items, e.g., vehicles, salaries, allocation of fixed costs, inventory levels
      • We need to Just do it!
    • Joint effort of Supplier and Distributor to improve resource use and improve business
    • Reinforces and strengthens business relationship between Supplier and Distributor
  • 9. What it is NOT…
    • An exercise or tool to change/reduce distributor discounts
    • An excuse to change any of the contractual agreements between the distributor and Supplier
      • Operational set-up
      • Coverage area
      • Deployment, etc.
    • A replacement to the official P&L Statement being used for government reporting and tax purposes
  • 10. P&L/ROI Tool
  • 11. P&L and ROI
    • Present the resulting P&L and ROI of the distributor using the template
  • 12. Key Opportunity Areas
    • Opportunity 1
    • Opportunity 2
  • 13. Action Plans & Timing
  • 14. Next Steps Next Steps Resp Timing