Salient Margin Minder Max
®
Maximum Profit Performance for DSD Beer Wholesalers
Salient Margin Minder Max
®
Maximum Profit Performance for DSD Beer Wholesalers
Table of contents
Introduction
Visibility Drives Performance
How Margin Minder® MAX Works
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Managing the Marketplace
The Basics (sales, revenue, cost, margin)
Feature Advertising
Recoveries/Off-Invoice Data
Merchandising
Space & Shelf Management
POS
Displays
Taps
Banners
Making “The Best Case” for Retailers
Collections
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Monitoring Operations Efficency
Supply Chain & Inventory Management
Loading
Delivery
Vehicle Tracking
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Getting to “True Net”
Margin Minder MAX® Brings It All Together
The Dynamic P&L
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Margin Minder MAX® Capability Summary
Testimonials
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Visibility Drives Performance
Beer wholesalers manage a complex mix of customers, products, warehouses, merchandise,
adverti ing initiatives, fleet and delivery operations. They have many complex trading
arrangements with both suppliers and customers, with extensive investments in materials
and equipment, and direct and indirect payments for feature advertising and other retailer
activities.
MARGIN MINDER® “MAX” accounts for value contribution... revenue, cost containment,
profit and loss, productivity and efficiency. It takes data from any source... invoices, load sheets,
work orders, payroll files, etc... and then organizes these data streams into a management
information super-store that mirrors a DSD beer wholesaler’s unique business environment.
Every manager, from the top to the street, gets a super-fast, easy-to-use toolkit to manage the
information interactively. MAX lets them easily interrogate huge data bases and then just as
easily visualize how individual decisions drive results. MAX runs on Salient’s UXT® technology,
the world’s most advanced platform for business activity monitoring.
How Margin Minder MAX works
Margin Minder MAX is a tightly integrated client / server business activity monitoring (BAM)
application that bolts on to several back office processing sources (no IT changes are necessary).
User access is via TCP/IP LAN, WAN and Net.
Its data engine / server is highly scalable… to billions of transactions… without compromising
speed or granularity. It exploits all means… compression, n-dimensional grid indexing, SMP and
MPP and more… to deliver maximum intelligence in minimum time to hundreds or thousands of
on-line users. It integrates transactional and causal data from any source.
It’s “Minder” client is a user driven intelligence assembler and presenter. It operates on both fat
and thin Windows® clients and reports in real time.
Sales Accounting Systems
Other Transaction
Processing Systems
Financial Systems
®
Margin Minder
MAX
Load & Go (optional)
Virutally Any Other Source!
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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INTRODUCTION
HOW MARGIN MINDER MAX WORKS
It’s completely dynamic...
Every view is always up-to-date and interactive, which means users can start from anyplace and quickly go anywhere... drill down into the
district, brand, key account that isn’t meeting expectations... zoom in on a particular week or day, etc. For example, here is a 10-second
graphical drill to find distribution voids.
Just double-click to list
customers who didn’t buy Best
Beer.
Another click reveals which products
they did buy.
On the following pages, you’ll see more examples that
represent how different department managers and
executives might see their information through MAX.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
THE BASICS (Sales, Revenue, Cost, Margin)
The marketplace is the core of every beer wholesaler’s business and most of its history is recorded on invoices.
MAX organizes every relevant sales fact (sales, revenue, cost, margin, etc.) according to the many dimensions of
the beer business so that everyday managers can explore and discover answers to the critical questions and seize
opportunities faster than ever before.
Typical Applications
• Create a “morning review” to examine the performance of yesterday, last week, month, period, etc. Compare results to budgeted goals.
• Compare Sales, Revenue, Cost of Goods, Margin, etc. between any timeframes, organized by any attribute, Region, Channel, Brand, Package, etc.
• Analyze market penetration, product cannibalization, etc.
• Find customers, sales representatives, products, etc. who aren’t meeting expectations.
Compare Volume, Revenue, and Margin vs budgeted goals and any other time.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
THE BASICS (Sales, Revenue, Cost, Margin)
Compare Multiple Timeframes (this week, four weeks, thirteen weeks, and year-to-date).
Compare Year over Year Volume Trends by Key Account.
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MANAGING THE MARKETPLACE
Show, then list customers who are outside the normal price range.
Depth / Frequency Analysis.
Show the effect of price changes on volume over
time.
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MANAGING THE MARKETPLACE
THE BASICS (Sales, Revenue, Cost, Margin)
Penetration and Trial. How quickly is the marketplace adopting a new product? (purchased one or more).
Customers who haven’t tried
the product.
Customers who purchased the
product at least once, but aren’t buying regularly.
Customers who are consistently buying the new
product.
List customers who aren’t buying the new product. What
did those customers buy?
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
FEATuRE ADVERTISING
MAX integrates ad information (costs, number of ads, advertised price, discounts) with sales data, to show how
much ads boost sales and profits.
Typical Applications
• Correlate the cost of ads with sales.
• See advertising effectiveness by Chain, Channel, Region, Demographic, etc.
• Track discounted pricing throughout off-premise chains (at Chain and Store level).
Feature Ads vs Volume and Margin.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
RECOVERIES/OFF-INVOICE DATA
MAX can track any cost or revenue stream down to the individual sale, even if the amount comes into the system as
a summary value. For example, MAX can allocate recoveries, rebates (incoming or outgoing), freight fees, taxes, overhead expenses, or any other cost or revenue, based on any criteria—groups of customers and/or products, customer or
product attributes, date range, sales volume, percent of total revenue, etc. So, users can see the true cost, revenue,
and profit of every unit sold.
Typical Applications
• Distribute rebates from the brewery (recoveries) to the individual units sold over a particular timeframe.
• Enter taxes as a percent of revenue.
• Assign operational and overhead expenses (payroll, warehousing costs, freight fees, etc.) to products, customers, and more.
Compare Extended Costs and Brewery Rebates by Product.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
MERCHANDISING - Space & shelf management
MAX can integrate survey and syndicated data on shelf space to show the effect of changes in space
allocations on sales results. As always, the information is always current and available on demand.
Typical applications.
• Monitor inventory / allocation of any / all SKUs by store or any roll up such as chain or channel.
• Spot trends and possible problems.
• Determine real sell-through and profit for presentations to retailers.
• Correlate causal changes in shelf space or position with changes in results of sales, volume, revenue, cost.
or margin. Evaluate from any
perspective such as chain, channel or territory.
• Monitor days on hand / out of stocks (own and competitors).
• Identify opportunities for increased sales. Optimize product turns.
Compare.
Space vs Volume / Revenue
/ Margin (facings / cubic
/ square feet / linear feet).
Here we introduce a new kind of data
(shown in pink) that tracks business
conditions or “causals”.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
MERCHANDISING - POS
As a beer wholesaler, you probably invest heavily in Point of Sale (POS) materials. As with any investment, savings
can be achieved by careful management. MAX keeps sales history together with history of placement types,
requests, dates, quantities, sizes, locations, costs, competitor information, and more. The result is a moving picture
of net value contribution of merchandising investments.
Typical Applications
• Maintain and grow your share of POS in the market.
• Identify customers who do (and don’t) deserve more POS investment by correlating POS spending with overall revenue and margin.
Compare POS to Competitors’ POS. Do we have the “market share”?
Total number of
pieces.
Our share of the
total.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
Compare POS quantity with sales results. Which customers deserve another sign?
Lone Star Steakhouse has
too many signs compared to
their low margins.
Pitic Restaurant has
extremely high margins,
and could use more signs.
POS by Customer Site. Compare Quantity vs Cost vs Overall Margin, then, for one site, show by brand
identity and type.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
MERCHANDISING - Displays
MAX integrates information about number, type, and volume on display, as well as competitor information to help
managers monitor display activity and control performance.
Typical Applications
• Compare your displays to competitor displays. Obtain and maintain the “market share”.
• Measure the effect of displays on sales volume, revenue, and margin.
Compare Shares of Volume on Display
and Number of Displays.
Trend.
Sales Volume vs Display Activity.
Salient uXT lets you compare two different types of data at once,
scaling the different data types to separate axes.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
Taps
More taps at your customer locations mean more kegs sold and higher revenues. MAX can integrate information about
number of taps (own and competitors’) to show how to increase your market share.
Typical Applications
• Compare your taps to your competitors’ taps by customer, market segment, or any other way.
• Find opportunities for new tap placements.
Compare Tap Count and Tap Share vs Competitors by Segment, with Sales Measures.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
MERCHANDISING - Banners
To make the most of banner investments, Salient uXT can integrate number of banners made, banner requests, number of hanging banners, and all banner costs.
Typical Applications
• Evaluate banner usage and cost by Salesperson, Customer, Division, Market Segment, etc.
• Correlate cost of banners to sales and profits. Is there a return on investment?
Compare / Interrogate Banner Cost vs Volume vs Margin by Salesrep.
Do customers have unjustified banner costs?
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MANAGING THE MARKETPLACE
MAKING “THE BEST CASE” FOR RETAILERS
Price - to - consumer information is frequently available through internal surveys or third - party or syndicated data
providers. MAX matches these up with beer wholesaler invoice data to provide a view of retailer profitability or “the
best case”.
Typical Applications
• See products flows and competitive shares.
• Win the contest for feature ads, space, and attention.
• De - list losers before your customer does.
Compare Retail Quantities, Prices, Revenue, Costs and Margin by Prodauct.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MANAGING THE MARKETPLACE
COLLECTIONS
Not only does MAX provide the information and tools to make more money, but it can also enable wholesalers to collect
the money that’s due to them when it’s due. MAX seamlessly integrates A/R information and sales information to show
A/R balances, invoice amounts, paid amount, oustanding balance versus revenue or margin, contact information, etc.,
by any perspective (customer, sales representative, region, channel, etc.).
Typical Applications
•
Compare A/R balances to revenue, margin, or any other sales measure.
•
Make others (sales representatives, district managers, etc.) aware of and responsible for past due accounts.
•
Quickly identify the riskiest accounts and provide all information required for immediate action.
•
Elevate A/R to a Key Productivity Indicator status within the company, including it in executive targets,
sales management performance evaluations, etc.
Compare A/R Balances by Sales Representative.
Are outstanding balances proportional to revenue
How many days past due are this sales rep’s
accounts?
List the worst overdue invoices along with
contact information necessary for immediate
action.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MONITORING OPERATION EFFICIENCY
SuPPLy CHAIN & INVENTORy MANAGEMENT
Beer wholesalers keep data about production schedules, orders placed, and inventory levels. MAX integrates all of
these into a comprehensive view of the supply chain, tracking ordered quantities, days of supply, projected inventory,
actual inventory, received quantities, etc., for every single product. So, you can see exactly how much of every item
is currently in-stock, and will be in the warehouse tomorrow, next week, or next month.
Typical Applications
• See the product pipeline daily.
• Measure the effects of promotions on inventory.
• Optimize for JIT on both purchasing and distribution.
• Show the effect of “push” stocking on carrying costs.
• Spot stock shortages before promotions start.
Stocking Trends.
How many days of supply
do I have? When should I
order more?
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MONITORING OPERATION EFFICIENCY
LOADING
Every load shift manager needs to match up manpower requirements with orders from the trade, and to load vehicles
as efficiently as possible, while maximizing the safety of his load crew. MAX uses data from load sheets, payroll, HR
files, and other sources to track head counts, load out, load in (returns), total delivered, labor hours, safety incidents,
etc., so that load managers can make their crews more productive.
Typical Applications
• Score / reward load management efficiency.
• Match up vehicle loads and load times to vehicle capacity.
• Reduce re-loads and mis-loads / load crew labor costs / net cost per loaded case.
Compare Loading Efficiency By Warehouse.
Compare Load Out to Load In by Vehicle, Route, Warehouse, etc.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
MONITORING OPERATION EFFICIENCY
DELIVERy
Delivery efficiency means getting the most from drivers, finding the right delivery frequency for all customers, and
keeping personnel and trucks at a minimum to decrease costs. MAX uses data from load sheets, handhelds, and
invoices (route settlement) to track average volume, revenue, and margin per drop and more.
Typical Applications
• Continuously certify operational productivity.
• Enable managers to perform day-to-day, day of week, trend and outlier analysis or drop size efficiency.
• Optimize delivery operations for maximum productivity of human and capital resources.
• Certify / reward managers for productivity performance.
• Coordinate merchandising with delivery schedules.
• Adjust drop size to minimize feature ad pre-loading.
• Correlate missed stops with sales trends. Reduce missed sales opportunities.
Pass / Fail Test.
Salient UXT can test customers,
products, etc. based on any measures...
less than any value, greater than any
value, or within a range. Set the criteria
(e.g. MC/Drop > $20) and get answers in
less than 10 seconds!
Test, then list, by Sales Route,
those customers with average MC
per drop of less than $20.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MONITORING OPERATION EFFICIENCY
VEHICLE TRACKING
Repair and maintenance records, capital asset files, and fuel cards provide rich information on the efficiency of
vehicles. MAX can track the entire cost of fleet operations such as depreciation, service costs, and maintenance...
even fuel mileage, to show where and how wholesalers can reduce those costs.
Typical Applications
• Monitor mileage per driver and truck.
• Eliminate high-cost vehicles...sooner rather than later.
List, then sort vehicles by % change in fuel efficiency.
Which delivery vehicles show unreasonable changes in miles/gallon? In a fleet of more than 600 vehicles, some show up with numbers that
require explanation.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
GETTING TO “TRUE NET”
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MARGIN MINDER MAX BRINGS IT ALL TOGETHER
True net value is the net result of all revenues and costs. Perhaps the greatest value of MARGIN MINDER® MAX is its
ability to bring all of these together in a comprehensive accounting of true net value contribution every day, for the
individual customer up to the enterprise. Now, everyone who needs to know can see instantly where and how activity
affects profit and growth.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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GETTING TO “TRuE NET”
THE DyNAMIC P&L
The Dynamic P&L of true net value delivers volume, revenue, costs, profit, and productivity... from the customer,
product, or asset up to the enterprise. It is updated and available every single day.
The P&L compares any two time periods
as well as actual vs. budget values.
The result is true net value from any
perspective.
MAX can even integrate transactional
data with incident counts (e.g.
invoice counts) and causal data (e.g.
population) to calculate key productivity
measures, such as per drop, per foot, per
cap, etc.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
GETTING TO “TRuE NET”
Entire company...
product...
customer.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
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MARGIN MINDER MAX Capability Summary
The MAX Productivity Tracking System...
• Bolts-on to any data processing system.
• Scales to many billions of data points, thousands of users.
• Integrates and organizes transactional and causal data from many
business functions into a coherent, whole enterprise productivity
tracking system.
• Provides a rich suite of tools for activity data interrogation,
visualization and analysis.
• Provides objective monitoring of value contribution at all points, for
all persons, functions and processes.
• Supplies information in time to affect outcomes.
• Delivers anywhere, anytime.
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MARGIN MINDER MAX – Maximum Profit Performance for DSD Beer Wholesalers
TESTIMONIALS
Based on a recent survey of our current customers, our systems save them
huge amounts of time and money. In fact, most customers have been able
to increase their margins by 3 to 5 cents per case since installation, and
have paid back their investment in less than a year.
“Our Salient system has been relatively maintenance free, paying for itself initially, then again
year after year. We used to spend the first week of every month pulling reports, but now we
don’t need to set aside any significant time for that, it is always available. This has been a
huge time saver. Sales managers don’t have to wait in line for reports they need now.”
Joe Gatz, Manager of Information Systems
Town and Country Distributors (Miller Distributor). Itasca, IL
“Payback on our Margin Minder was obtained in 6 to12 months. Payback consisted of time
savings for people who were doing long report generation and identifying pricing problems
quickly, enabling us to correct them, going forward. In a pricing scenario, Margin Minder/UXT
has definitely added 2 cents to a nickel per case, no less than 2 cents for sure.’’
Joe Dempsey, CFO
Cresent Crown Distributing, LLC (Miller/Coors/Shared House Distributor). New Orleans, LA
“We made our money back in about six months after purchasing Margin Minder, achieving an
average per case increase of about 5 cents per case in our major packages that drive margin
and volume. Without a doubt, it is the best software we have ever bought.”
Budweiser Distributor
“On a general level, it only took about 25 minutes for a payback because we were finally able
to see things in real time. In the bigger scheme of things, it probably took twelve to sixteen
months before we saw a complete payback on Margin Minder because in that time we were
able to arrive at tactical pricing promotions and make valuable changes versus on what we
were doing in the past.”
Anheuser-Busch Distributor
“Our Sales Managers are now about 100% more effective with Margin Minder.”
Aaron Dym, Controller, MIS
W&L Sales (Coors Distributor). Harrisburg, PA
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About Salient
Salient Corporation makes very large scale in-memory intelligence technology for ad hoc data interrogation,
visualization and root cause analysis. The company provides continuous audit, performance monitoring and
forensic applications for business, health care, education and government.
For More Information
To discuss Salient Geo can work for you, and to consider a low-cost, quick-start solution for a
fast-track answer to your most pressing current issue, call (607) 739-4511, or email the
Salient Management Institute at [email protected].
Salient Corporation
203 Colonial Drive
Horseheads, NY 14845 USA
phone: 607 739 4511
fax: 607 739 4045
salient.com
©2008 Salient Corporation