This document discusses the interactions between various processes in distribution companies, including the sales process, pricing process, and targeting processes. It notes that the sales process is complex and interactive, and that formalizing the process may meet resistance from salespeople. Higher performing companies are often more process-driven, with disciplined sales management and better control, segmentation, and reaction to economic changes. The document also examines targeting customers and products, and integrating pricing and solution processes with a focus on continuous improvement.

1. Process Interaction3/2/2011copyright River Heights Consulting 2011

2. Process in DistributionThe Wild westLogisticsDifficulty SystemizingWarehousingFreight ShippingIT/Support

3. The Distributor Sales ProcessIt’s Complicated and…It’s Interactive

4. There’s PushbackDo you want me Selling of Filling out Forms?My sales will go down because I will loose customer intimacy!They can’t make me do that..This steals from my selling time…Big Brother, Mind PoliceJob SecurityI’ll fight….

5. We already have a process….But, it’s informal…Each salesperson has their own…Real or imagined?Here are the tests of a real process..

6. Evidence MountsOnly High Process GroupsPerceived ValueSales Process

7. Pricing ProcessInteracts with SalesForces Process Driven:Feedback

8. Scientific Pricing Analysis

9. Training

10. DocumentationThis Results in:Better Segmentation (Customer and Vendor)

11. Stronger Feedback

12. Discipline in Sales Mgmt.Upper QuartilePerformanceOften have higher margins but…Not a margin driven thing…Better Control of ProcessAffects:Selling Activity/Results

13. Operational Costs

14. Transactional Costs

15. Inventory Control

16. React Better/Faster to Changes in Economic ConditionsWhat’s next?TargetingBest customer to product matchCustomers most likely to value and respond to our solutions

17. Product Level TargetingVendor – OrientedFast Results – typically 6 months or lessEasily automatedPricing Process

18. Solution TargetingAre we there yet?plusLean

19. Typical DocumentationMeasures Where are we in the process?

20. Time in stage

21. Salesperson stuck in stage?Coaching/ManagementNeed to abort late in process?

22. Salesperson’s ability to gather information.