After 30 years in executive positions with major US companies, Charles Bodenstab in 1983 bought a supposedly profitable distribution company that was actually 'haemorrhaging'. By instituting strong inventory control and cash management programs, he turned the company profitable in one year. Ten years later, after creating, refining, and using the inventory and cash management techniques he explains in the new book A New Era in Inventory Management for the Distribution Industry, he sold the company for more than 20 times earnings. Bodenstab's involvement during the 1950's and 1960's with developing some of the earliest qualitative automated approaches to inventory management helped him in the new role as a wholesaler-distributor to quickly understand a fundamental truth: Much of the statistical theory built into automated inventory control systems completely ignored the day-to-day business realities of the typical distributor. His response was to develop his own automated approaches to inventory management in a distribution environment, approaches that he now shares with you in A New Era in Inventory Management. The centrepiece of the author's system is a series of concepts and formulas that, when combined in an automated system, will allow you to create a replenishment order for a particular vendor within 15 minutes. And not just any replenishment order, but one that:
The first section of A New Era in Inventory Management discusses a variety of inventory management tools that are routinely misused and rules that are often broken by distributors. It then explains how correcting these misuses and abuses can offer some very high payoffs - very quickly. The remainder of the book explains the concepts and techniques for inventory control that can be brought together in the extremely powerful automated replenishment system mentioned above. More than 100 companies are currently
using the system outlined in A New Era in Inventory Management to
dramatically improve their inventory turns and fill rates. Order A
New Era in Inventory Management today and let Charles Bodenstab tell you
in a few hours what it took him several decades to learn! Contents The words 'technology maze' capture the distributors' overall perspective on integrating technological advances into their businesses. On the one hand, technology is just another means to an end the efficient movement of goods from supplier to customer. On the other, the proliferation of new technologies provides an infinite number of value-added alternatives to achieve that end. The current book follows on from a previous publication from the Distribution Research & Education Foundation called Facing the Forces of Change: Beyond Future Trends in Wholesale Distribution. This was the result of what is now recognised as a landmark study and contained a section on technology issues. These are now seen as being so far reaching and important that the Arthur Andersen Company was asked to extend this area of study which is now represented in this new book. It embodies a balance of theory, practicality and case studies and the aim is to show how to analyse and implement technology using a sound and practical business base as the starting point. The genesis to use technology must be a company’s business plan and case studies 're included which show that, by planning properly, technology can be used successfully as a means to achieving a defined set of business goals To use technology to attain competitive advantage, companies need to expect change. The assessment of change and the planning processes that follow are comprehensively covered. Facing
the Forces of Change 2000: This is the third in a series of acclaimed 'industry trend studies' and has variously been lauded as 'dynamite', 'a must read', 'required reading' or even 'You are taking a chance with your company's future if you ignore it!' The book reflects the views of 800 expert panelists who were asked for their assessment of the wholesale distribution industry today and what it will look like in the year 2000. Their views are presented on the new forms of competition that can be expected; the changes in attitude of manufacturers towards distributors; and the changes in attitude of distributors towards their suppliers. Of particular interest are the critical considerations that must be faced by distributors if they are going to survive and the reasons why some operations will certainly fail. With the industry facing continuing and severe economic and competitive pressures, the insights provided by this book are designed to provide readers with an in-depth assessment of the issues confronting them, a means of providing a framework within which these issues can be properly evaluated and proposals for dealing with them successfully. Facing the Force of Change 2000 is probably the most illuminating book on the future of wholesale distribution that had appeared for some years. As it points out very clearly: 'Change is constant, but it doesn't have to be a constant surprise'. Just-in-Time
for the 90's This book discusses the opportunities presented by JIT in distribution including more sales per salesperson; predictable sales volume; predictable inventory mix; more inventory turns; reduced order-filling costs; maximum efficiency for computer systems; greater influence with suppliers; and the provision of a level of service to small customers formerly available only to the larger accounts. JIT is one of the most talked about topics in distribution circles. The authors look at the reality of implementing JIT procedures and show how companies can increase business volume and profitability. They discuss how to select JIT suppliers and customers and how to get the concept over to them as well as the best means of getting up the most effective contractual agreements. In particular, it shows how the JIT philosophy can be implemented in large, medium as well as small distributors as a strategy for the future and an investment for the present. Originally, JIT was an approach to improving manufacturing operations but, very quickly, it allowed the identification of wasted time throughout the whole supply system ranging from the factory floor to administration. The authors show how JIT works in Japan where the concept was originated and how to learn from the mistakes and successes that have brought JIT to its current state of sophistication. Distribution
Survival in the 21st Century Why yet another book about distribution, the future, computers and inventory control? This new book follows on from two previous works by the author called Automated Inventory Management for the Distributor and Distribution Inventory Management for the 1 990's. Gordon Graham is an acknowledged expert in his field but, while the above volumes offer a widely comprehensive guide to two important subjects, he points to the fact that wholesale distribution is a very dynamic industry undergoing constant change. Central warehousing, systems contracting, bar coding, EDI, 4th generation computer languages, caller identification, the growth of large distributors by acquisition and a renewed emphasis on the quality' process - all these areas and more keep affecting and altering the way distribution businesses should operate as they move towards the 21 st Century. As distribution is fragmented in its various structures - software developers have endeavoured to generate standard packages that will embrace all areas of distribution and have failed miserably The future is not an open book and the role of distributors as they move forward remains hazy. Nevertheless, the growth of panEuropean/pan-Continental multinational organisations is certain, there will be a growing tendency for many customers to restrict their number of 6uying sources, while the trend towards selling on service as well as on price appears to be cost in stone. Graham's book examines the probabilities of change in depth and shows how a distribution company's survival will 'be dependent upon how quickly it can adapt to change and adopt new business philosophies. Total
Quality Distribution This highly readable and informative book deals with the subject of Quality in the Wholesale Distribution Industry. It embraces the basic but universally accepted principles of Total Quality Management by detailing the stories of widely varying companies that have successfully implemented these principles in a distribution environment. While it looks at a range of different commodity areas, much of the information provided comes direct from cam any executives who have faced up to the need to create a quality environment - sometimes without unqualified support from their co-directors or senior management. The preface of the book highlights the fact that Quality is a somewhat nebulous and often frustrating concept simply because there is no commonly accepted definition of its the true nature it is different for every organisation and it is a constantly moving target. For this reason, it is not possible to simply implement a quality scheme and then sit back and wait for it to work. The scheme will require constant review, regular updating and the injection of fresh ideas on a regular basis. In broad terms, the book defines Total Quality as a strategy for recovering diminishing profit margins and also a means of creating total confusion for many distributors. It endeavours, therefore, to provide practical approaches which will allow companies to meet '100% of customer requirements 100% of the time' - the fundamental philosophy behind Total Quality. And it aims to meet the criticisms of those doubters of its true value who point to on-again-off-again starts and expensive failures without pinpointing exactly where suspect implementations went wrong. Total Quality in distribution is now the most vital attribute for future success. This book makes a significant contribution to a continuing dialogue. |
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