Deliver Gross Profit
Delivering Gross Profit dollars is critical to the survival of the business. All to often, gross profit margin is sacrificed to increase volume, without the understanding of the implications for how much additional product has to be made and moved to achieve the desired EBIT and ROI outcome. The components of delivering gross profit include:
- Developing a Production / Service Delivery Plan
- Understanding the Product / Service Costs at breakeven and other volume steps
- Establishing a reliable and quality team of Suppliers and managing the & Supply Chain
- Manufacturing the Product using competitive (Lean) principles
- Warehousing and Distributing the Product efficiently to achieve the customers desired DIFOT (a measure of orders Delivered In Full On Time)
- Delivering Services to customer timeframes and locations
- Making sure that all products and services are Quality Assured and Continuously Improved.
Each of these seven elements is important in delivering the 6R’s: Right Product, Right Cost, Right Quality, Right Quantity, Right Location, at the Right Time.