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Profitability Improvement


Understanding Customer and Vendor Profitability

Through extensive “drill down” reporting systems, KSA carefully analyzes customer, product and vendor profitability. This process results in a series of detailed recommendations for improving results. The models KSA uses were developed by Managing Director Bill Beattie, and received the IFDA Diamond Award for Excellence.

After completing the analysis process, KSA follows up with an on-site visit to facilitate meetings with owners, executives, sales teams and procurement groups to review findings and map out measurable goals. Working with management, KSA develops timetables for implementation and follow up. These plans produce near term results, and where needed, provide a roadmap for long term directional change.

“We engaged Keiter Stephens Advisors to work with us on vendor profitability, and with their guidance, we’ve driven down losses on business with unprofitable suppliers from 50% to 25%. More importantly, KSA worked side by side with Jordano’s Director of Purchasing and Marketing to develop the model and incorporate her expertise and vision in the project.

On the customer side, in foodservice, you have to know to the penny what it costs to deliver groceries. KSA helped us uncover potential areas of excess cost or lost opportunity serving operators. Armed with this information, we’ve improved how we manage our sales force by highlighting options for margin improvement and reducing over-servicing, and we’ve improved customer profitability by 20% overall.”

Jim Spencer – Vice President/General Manager, Jordano’s
Santa Barbara, CA

Please contact Keiter Stephens Advisors for more details.