Bruce Merrifield, President — Merrifield Consulting
•distribution management best practices •sales practices •profit war stories •line-item profit analytics in distribution •Bruce Merrifield •customer profitability •coronavirus •COVID-19 •downsizing
Thursday, April 23, 2020—The C-19 pandemic has popped the global, bubble economy. The just-in-time, supply chains and economies loaded with too much debt are all disrupted. Most of the global economy is locked-down. How will the New Normal economy emerge? No one knows. Guesses abound. Bruce Merrifield presents adjustable, downsizing plans for - best, likely and worst – case scenarios. In parallel to C-19 challenges, don't forget to be inventing winning "digital models" by 2023. B2B e-buying was ascending before the pandemic. Now, C-19 necessities are teaching everyone how to use and like virtual interactivity and buying.
Two Downsizing Methods: Chain-Saw v DURRR. The chain-saw technique? Use your financials to do what has worked in the past: even though present challenges are unique. Cut: all discretionary spending; all forward investment; and all operating-costs as fast as - sales, margin dollars and profits - fall. Then, sell harder (the same way) and be tough with channel "partners" in the - zero-sum, win-lose concession struggles. Or: DURRR? Use net-profit analytics (with a cost-to-serve model at the line/pick/sku level).
Audio file: C-19_ParadigmChange.mp3