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d engagements outside the wholesale distribution industry. ? To support the Chicago office Business Consulting engagements within the wholesale distribution industry. 81 As an integral part of Arthur Andersen’ s Wholesale Distribution Program, Management Foresight has built an admirable following over the past 20 years among more than 3,000 firms and trade associations. A unit of Arthur Andersen since 1991, its financial and industry surveys have enabled business owners to evaluate their own performance relative to the industry. Management Foresight gains from Arthur Andersen’ s breadth of experience, its leadingedge research, and its relentless attention to client needs. Some of the products/services Management Foresight provides to its clients include: Management Foresight ? Financial surveys (PAR) for almost 30 wholesale distribution trade associations ? Monthly Statistical Reports ? Delphi Studies ? Compensation Studies ? Best Practices for Wholesale Distribution 82 Liaisons With Trade Associations Following is a partial list of the trade associations for which Arthur Andersen/ Management Foresight routinely performs speeches, seminars or surveys: ? American Machine Tool Distributors Association ? American Veterinary Distributors Association ? American Wholesale Marketers Association ? Barber and Beauty Supply Institute ? Concrete Reinforcing Steel Institute ? Industrial Distribution Association ? National Association of Aluminum Distributors ? National Association of Electrical Distributors ? National Association of Wholesaler Distributors ? National Business Forms Association ? National Electronics Distributors Association ? National Locksmith Suppliers Association ? National Paper Trade Association ? National School Supply and Equipment Association ? National Welding Supply Association ? National Wholesale Druggists’ Association ? Northamerican Heating, Refrigeration and Air Conditioning Wholesalers ? Outdoor Power Equipment Distributors Association ? Power Transmission Distributors Association ? Steel Service Center Institute ? Wallcoverings Association ? Wine Spirits Wholesalers of America 83 Practice Support Activities Proposal/Engagement Support Centralized source for wholesale distribution industry information: ? Industry Trends ? Performance Statistics ? Best Practices Office Seminar Support Presentations on industry program research. Specific expertise in strategic planning or quantitativelybased consulting engagements. 84 Current / Recent Industry Projects NAW Benchmarking Project 85 Process to Benchmark Purchasing/Inventory Management 3 Chosen for the following reasons: ? Importance to a distributors’ business ? Data should be relatively easily accessible 86 WHOLESALE DISTRIBUTION Process Classification Scheme: W/D Operating Process Plan for and acquire necessary resources or inputs * Acquire capital goods * Hire employees * Obtain materials and supplies * Obtain appropriate technology Convert resources or inputs into products * Develop and adjust production process (for existing process) * Schedule production * Move materials and resources * Make product * Package and store the product * Stage the product for delivery 5A. Manufacture or Convert Products Make delivery * Arrange product shipment * Deliver products to customers * Install (if specified) Manage delivery process * Document and monitor order status * Manage inventories * Assure quality * Schedule and perform maintenance * Monitor environmental constraints 5B. Deliver Product Plan for and acquire necessary resources * Hire employees * Obtain materials and supplies * Obtain appropriate technology * Acquire capital goods Develop human resource skills * Define skill requirements * Identify and implement training * Monitor and manage skill development Deliver service to the customer * Confirm specific service requirements for individual customers * Identify and schedule resources to meet service requirements * Provide the service to specific customers Ensure quality of service 6. Deliver Services Bill the customer * Develop, deliver, and maintain customer billing * Invoice the customer * Respond to billing inquiries Provide aftersales service * Provide post sales service * Handle warranties and claims Respond to customer inquiries * Respond to information requests * Manage customer plaints 7. Invoice and Service Customers Obtain Materials and Supplies 87 Industries Represented in Project 3 Electrical 3 Hardware 3 Industrial 3 Metals 3 MRO Supplies 3 Wine/Spirits 88 Purchasing/Inventory Management Process Workplan The following identifies the five major steps that were performed by the panies in the NAW benchmarking project: ? Goals and objectives of the pany for the process/areas associated with the process ? Documentation on how employees associated with the process are pensated and performance monitored ? Process mapping of the process ? Development of time estimates for employees involved in the process ? Data collection questionnaire 89 Inbound Shipments Filling an Order/ Delivery Forecasting Buying Inventory Control Process to Determine “ Best Practices” Inventory Management 3 Recognize need to buy 3 Complete purchase requisition information 3 Confirm with suppliers enter system 3 Reconcile purchase order invoice Reassessment 90 Obtain, Understand and Analyze Best Practices Adapt and Incorporate Best Practices Recalibrate and Improve Determine What to Benchmark Understand You