安达信咨询方法与工具资料库DITRIB2.DOC免费

REVENUE ENHANCEMENT SERVICES CREDENTIAL SERVICE OFFERING: Integrated Customer Management CLIENT: Acme Book Magazine AA OFFICE: Philadelphia INDUSTRY: Distribution ENGAGEMENT PARTNER: Patrick J. McCormick REVENUES: $200M OFFICE: Philadelphia PHONE: 215-241-8297 ENGAGEMENT MANAGER: Joy M. Janice OFFICE: Philadelphia PHONE: 215-241-7426 ENGAGEMENT DESCRIPTION: The company distributes books and magazines from multiple distribution centers and warehouses to some of the nation’s leading mass market retailers, grocers, drug store chains and airport terminals. In addition, they provide comprehensive services to their customers, including in-store merchandising, product ordering, returns processing, inventory management and price labelling. Increasing power in the retail base has brought about dramatic challenges to book distributors -- resulting in severe reductions in profit margins and industry-wide consolidation of distributors. Arthur Andersen was brought in to help find ways to improve the overall profitability of the book distribution business. PROJECT APPROACH/WORKSTEPS: Arthur Andersen approached the engagement in the following manner: 1. Analyzed historical sales transactions and built a customer profitability model to identify all of the costs incurred in serving each of Acme Books’ market segments, customers and store locations. 2. Built a model which assess all traffic flow from publishers, to distribution centers to individual store locations to determine the optimal distribution sites and network configuration. 3. Developed recommendations which focused on: renegotiating customer discount rates to increase profitability redesigning product configurations to increase sales of higher margin products developing new in-store merchandising standards to increase the efficiency and effectiveness of in-store merchandisers. re-configuring the entire distribution network to reduce shipping costs and realize operational efficiencies. RECOMMENDATIONS: Renogo