Value-added tasks are those things that make a real difference your business.
Think cash flow planning, gross profit reviews, and long-term planning.
The key is to identify the most important tasks, prioritize, set deadlines and execute to get them done.
In the next post we’ll talk more about exactly HOW to do this. For now, let’s talk about WHAT those most important tasks are.
Top 5 Value-Added Tasks
- Cash flow management and forecasting
- Profitability and margin optimization
- Team alignment and accountability
- Benchmarking and industry intelligence
- Capital planning and long-term investment
Below is a short outline of each value-added task with bullet points to get you started.
#1 Cash Flow Management & Forecasting
- Create and maintain a 12-week rolling cash flow forecast
- Build and review a working capital dashboard (cash, LOC, receivables, payables, inventory)
- Identify and prioritize cash flow levers (faster AR collections, slower AP payments, just-in-time ordering, debt restructuring)
#2 Profitability & Margin Optimization
- Analyze gross profit by product line/supplier/brand/SKU
- Review COGS trends and compare to prior periods to detect cost creep
- Perform “menu engineering” for portfolio offerings: re-price or replace low-margin items
- Track and reduce OOC losses in warehouse and trade
- Conduct a vendor cost comparison or renegotiation to reduce costs
#3 Team Alignment & Accountability
- Hold weekly or monthly financial huddles with department heads
- Share simple dashboards with management team and staff
- Define and track KPIs by department: labor efficiency ratio, inventory turnover, GP per CE, etc
#4 Benchmarking & Industry Intelligence
- Compare KPIs to industry benchmarks (gross profit, operating income %, labor cost %)
- Compare KPIs to prior periods – trend analysis – identify KPIs that are out of pattern
- Run a quarterly SWOT analysis on financial health and profitability
#5 Capital Planning & Long-Term Investment
- Build a CapEx plan for upcoming equipment or expansion needs
- Model ROI for new cars, trucks, warehouse equipment, etc.
- Evaluate lease vs. buy options for real estate or equipment
In the video below I’ll walk through each of these value-added tasks, and provide more direction on how to attack each one.
The stakes are high. When you focus on value-added tasks you transform your business.
Do this next:
- Watch the video below: Wholesaler Value-Added Tasks
- Join our network of beer wholesaler owners – sharing ideas and best practices to run a stronger beer business
