WASHINGTON, D.C. — The National Association of Wholesaler-Distributors (NAW) Institute for Distribution Excellence released a new book called Profit Myths in Wholesale Distribution: The Truth About Sales, Margins, Inventory, and Expenses.
Written by Dr. Albert Bates of Profit Planning Group, the book is intended to change the way distribution managers think about their businesses. Some of the mind-set changes the book talks about include: replacing GMROI as a measurement tool; appreciating that bad debts may not always be bad; understanding that lowering inventory is frequently a bad idea; accepting the fact that sales growth can be too fast as well as too slow; and identifying why most sales force commission plans don’t work the way they are supposed to.
“Bates gets to the heart of the matter in the premise of his book: both decision quality and decision consistency are influenced by some very bad information,” said the association.
“He points out that the problem is exacerbated by the fact that the bad information looks good on the surface. This book promises to give distribution executives an eye-opening experience if they accept that much, if not most, of what they have been told about distribution finance issues is wrong.”
