From our previous collaboration with Bradley on an ERP transformation program, we recognized that there were potential opportunities to improve the sales processes. Our recommendation was to investigate the pricing policies and sales processes in order to perform a bottoms-up analysis of the discount and pricing strategy/tactics employed by their independent sales representatives. Together with the Bradley executives, we devised a brilliantly simple hypothesis: Substantial opportunities existed to use management reporting tools to offer transparency into sales yields across the enterprise that would likely result in higher operating income margin.
Liberty worked with Bradley to develop a yield management process and toolset that leverages their transaction data to generate powerful management reports to identify areas to increase pricing across products, customers, and regions. Additionally, the tool generates reports indicating sales across the available company products, which enable managers to assess and improve sales in product groups that are underdeveloped and under-marketed. The tool and improved processes enables Bradley to more quickly realize price changes in the market – realizing price increases and cash rather than deeper discounts. The approach instills sales representative discipline through fact-based management, which lead Bradley to increase profits selling the same products, to the same customers, at the same volume.
Through the implementation of the toolset and sales process improvement Bradley is actively managing pricing and product penetration in every sales territory. The results of this initiative has been an improvement of operating income by 40% the first year of implementation and over two years realizing $8MM of additional operating income. Additionally, Bradley was able to increase gross YOY sales to existing customers as a result of looking at customer Share of Wallet data and sales person product mix.