AN  EXECUTIVE  EDUCATION  PROGRAM

 

OFFERED BY

 

Dr.  Roger K. Harvey

President, Value Associates, Ltd.

and

Emeritus Professor of Finance

The Ohio State University

 

 

Description

 

Many distribution companies today are facing mature or declining markets.  To gain market advantage and improve their Return on Investment, CEOs, CFOs, COOs and CIOs must introduce new tools which look inside their company for sales enhancing and cost-saving opportunities. This intensive half-day program (two 1½ hour sessions) will present two contemporary profit enhancing tools:  Customer Profitability Analysis and Activity Based Cost (ABC) accounting.

 

The program presents an ABC accounting framework within which customer profitability analysis may be implemented in a wholesale distribution company or in the distribution function of a manufacturer.  The program addresses all steps in the process of developing a customer-focused ABC accounting system in an organization.  ABC becomes the means to the end; the ‘end’ defined as determining the profitability of individual customers or customer groups/segments.  Again, a financial framework is developed for using the ABC information to measure, evaluate, change, find, and eliminate customers.  Computer software to facilitate implementing ABC and customer profitability is discussed. 

 

All aspects of the program are distribution-focused and should be of interest to wholesale distributors or manufacturers involved in the distribution function.  This program is not an off-the-self presentation of ABC concepts from manufacturing.  The program has been developed from 25+ years of consulting in the wholesale distribution industry; the last five years has been devoted to research, writing, software development, and consulting on the subjects of this program.

 

Objectives

 

Participants will leave the presentation with the following knowledge:

 

·        understanding of how customer profitability assessment and Activity Based Costing (ABC) directly impacts on their firm’s ROI

·        strategies and guidelines for implementing an ABC accounting system for customer profitability analysis in their own organization

·        awareness of ABC and customer profitability analysis software that is available for their mini-computer and PC computer systems

 

Brief Outline

 

•     The What, Why, and How of Customer Profitability Analysis

 

•     The What, Why, and How of ABC

 

•     Using Customer Profitability Analysis to Identify Poor Customers and Strategies for Turning Them into Profitable Ones

 

•     Using Customer Profitability Analysis to Bid for Business, Set Prices and Margins, and Establish Levels of Service

 

•     Implementing Your Own ABC Accounting and Customer Profitability System