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| Preface | |
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| Acknowledgements | |
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| Introduction and why business models matter | |
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| Introduction | |
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| Who this book is for | |
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| What do we mean by business model? | |
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| How this book is set out | |
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| Why business models matter | |
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| Distribution matters | |
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| Challenging business dynamics | |
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| Business models are key to value propositions | |
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| A structured approach to positioning your value proposition | |
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| Be careful with comparisons | |
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| Distributors and wholesalers | |
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| The role of the distributor | |
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| Distributors/wholesalers | |
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| Customer role - core functions | |
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| Supplier role - core functions | |
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| How the distributor business model works | |
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| Role defines business model | |
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| Profit is a very small number between two very big numbers | |
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| Managing working capital is a balancing act | |
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| The measures that matter and how to manage with them | |
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| Margins and profitability | |
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| Multiple margins | |
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| Gross margin and value add | |
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| Margin mix or blended margin | |
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| Contribution margin | |
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| Net margin and operating margin | |
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| Working capital | |
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| Working capital management | |
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| Supplier credit | |
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| Inventory | |
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| Customer credit | |
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| Working capital cycle | |
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| Productivity | |
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| Earn and turn | |
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| Contribution margin return on inventory investment | |
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| Returns on working capital | |
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| Sustainability | |
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| Sustainability - longer-term business health | |
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| Return on net assets and return on capital employed | |
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| Return on invested capital | |
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| Value creation | |
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| Managing value creation on an operational basis | |
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| Managing growth | |
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| Growth dynamics | |
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| Internally financed growth rate formula | |
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| Economies of scale - profitability | |
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| Economies of scale - working capital management | |
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| Risks of growth - diseconomies of scale | |
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| How to sell to distributors | |
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| What we mean by selling to distributors | |
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| The sales process | |
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| Managing the account relationship | |
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| Some rules of thumb for making compelling business cases | |
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| Summary | |
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| Final-tier trade channel players | |
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| The roles of the final-tier trade channel players | |
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| The final-tier trade channel players | |
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| The possible roles of final-tier trade channel players | |
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| Matching channel roles to channel players | |
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| Different roles command different compensation models | |
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| Customer advocates and sell-with players | |
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| Sell-with players and strategic alliances | |
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| Applying this framework to your industry sector or channel | |
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| How the business model of the final-tier trade channel players works | |
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| Role defines business model | |
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| Services come from people, either directly or indirectly (eg web-delivered) | |
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| Managing a service business | |
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| Service-based business model | |
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| Overview of service business model measures | |
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| Sales and utilization | |
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| Sales | |
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| Utilization | |
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| Gross margin and recoverability | |
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| Gross margin | |
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| Recoverability | |
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| Working capital management | |
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| The cash-to-cash cycle | |
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| Improving working capital | |
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| Value creation and growth | |
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| Value creation and improving the numbers | |
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| Managing growth - the integrated product and service business model | |
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| How to sell to final-tier trade channel players | |
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| What we mean by selling to final-tier trade channel players | |
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| Segmenting the final-tier trade channel | |
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| What the final tier looks for in a vendor | |
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| What the final tier looks for in a distributor | |
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| Managing the account relationship | |
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| Some rules of thumb for making compelling business cases | |
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| Selling 'with' the final tier in an advocacy role | |
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| Conclusion | |
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| Retailers | |
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| The role of retailers | |
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| Retailers and retailing | |
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| Catalogue and online retailing | |
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| How the retail business model works | |
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| Role defines business model | |
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| Earn and turn | |
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| Layout and planogramming | |
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| Ranging and merchandising | |
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| The measures that matter and how to manage with them | |
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| Sales (or takings or revenues) | |
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| Margins | |
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| Direct product cost (DPC) and direct product profitability (DPP) | |
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| Turns and productivity | |
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| How to sell to retailers | |
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| What we mean by selling to retailers | |
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| The sales process | |
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| Retailer challenges and their implications for suppliers | |
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| Impact of the internet | |
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| Managing retail relationships at a strategic level | |
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| Managing retail relationships at a tactical level | |
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| Selling in to the retailer's buying cycle and open-to-buy | |
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| Should you deal with retailers direct or through a wholesaler? | |
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| Summary | |
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| Key ratios | |
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| Glossary of technical terms | |
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| Index | |
