MANAGEMENT TOOLS

by Sam Boyer

Having effective management tools are a must for a profitable distributor.  As with any tools those you need each day come in many sizes and each tool has a specific purpose.  Successful beer distributors use the following management tools:

Sales Routes:  Your retailer service policy must dictate call frequency.  Sales routes need to be structured to ensure the effectiveness of your selling efforts.  The resulting pre-sell, driver-sell, and/or tel-sell sales routes will ensure quality time is available for the proper selling and servicing of all retail accounts regardless of case sales.  Anything less will reduce your sales growth.

Delivery Routes:  They must focus on balancing the workload.  Your delivery routing structure has to also minimize the employees and vehicles required, miles driven, and time necessary for effective performance.  Anything less will reduce your profitability.

Compensation:  Compensation for all your employees must focus on rewarding individual performance.  Management compensation should include a base salary, commission structure, and annual incentive program.  Salesperson compensation needs to include a base salary, commission structure, and a quarterly sales incentive program.  Delivery, warehouse, and administrative employees should have quarterly performance incentives. 

Inventory Control:  Inventory control policies and procedures must be documented to ensure ongoing protection of this volatile asset.  Checkout and check-in procedures must be in place and followed.  Physical inventories must be taken as scheduled and include all products and empties.  Step-by-step procedures for identifying and correcting inventory variances in a timely manner and paperwork flows to ensure timely and accurate data entry of product receiving into the computer system must also be in place.

Position Descriptions:  Your position descriptions must accurately reflect the duties of each employee.  They must clearly define the role, responsibilities, and authority of each employee.  Each employee must have a current copy of his or her position description.  Having a complete and accurate set of position descriptions will ensure all tasks necessary to operate your distributorship are someone’s responsibility.  The position description tool is a critical link in your internal communication network.

Performance Evaluations:  A position description based performance evaluation system should be developed and implemented to provide a hands-on method for constructive feedback and documentation of employee performance.  This tool must be designed to maximize the communications between the managers and their subordinates while minimizing the time needed to complete the evaluation process.

Employee Handbook:  An employee handbook should include work standards, policies, and benefits.  The written policies streamline the decision making process and reduce the time you and your managers spend on routine matters.  The employee handbook should also clearly define the expectations you have for your employees.  Download a table of contents for an employee handbook from www.samboyer.com.

Workplace Safety:  A workplace safety program must be in place to promote the safety and health of your employees.  It will reduce the costs and risks resulting in workplace injuries, illnesses, fatalities, and low morale.  Your workplace safety program must include the required OSHA elements.  Management commitment is essential if your workplace safety program is to be effective.  Download a table of contents for a workplace safety program from www.samboyer.com.