Wholesaler Distribution Planning: Information management is the key - Brief Article

Modern Brewery Age, Jan 28, 2002 by Pat Jones

A wholesaler's ability to grow revenue and participate in a fragmented, competitive environment is closely correlated with their organization's ability to use information for competitive advantage. To grow market share a successful wholesaler must have access to:

* External information concerning the marketplace

* Operating information that assists in measuring productivity and performance

* Financial information that compares operating results to prior years and plan

* Sales information to determine effectiveness of sales strategies

* Human resource information that promotes quality of life and employee development

* Summarized information that enables management decision making

Many wholesalers are faced with major information system decisions. Areas of concern include:

* Upgrading existing hardware and software

* Understanding organizational information requirements

* Streamlining operations

* Identifying functional requirements

* Developing a standardized approach to managing their information environment

* Selecting software that meets organization and marketplace requirements

Information is "power"--the power to compete locally, nationally, and internationally. Frequently a wholesaler's reaction time and decision-making ability are negatively impacted by the absence of appropriate information, access to information, or inability to use available information effectively. Information helps remove guesswork from decision-making. Since information is fact based, excuses, conjecture, gut feeling, and other subjective factors that comprise the operating environment are reduced.

Enabling the effective capture and use of information requires an information plan. A useful information plan contains the following components:

* Information Vision--Where do we want to take our business over the next five years and how can information assist us in doing that?

* Information Plan development--What are the key information components that must be put into place to facilitate the Information Vision? What reporting does senior management, mid-management, etc., require?

* Existing Information Infrastructure--What information is available today and how do we use that information? What information do we need that is missing? What new information must we generate to meet our vision?

* Existing Data Structure--What data exists today, what are the sources of that data? What relationships exist among the data? What are the data characteristics? Where does the data reside?

* Information Architecture--What will the future data structure look like? What data elements are required that do not exist? Where will these new elements be captured? What are the characteristics of these elements? How will data be captured, stored, and used?

* Functional Specifications--What are the functional requirements for meeting the business and information visions? What processes require modification? What new processes are required? What types of reporting is required, how often and in what form?

* Technical Architecture--What types of hardware, software & communications technology are necessary to meet the information requirements and functional specifications?

* Software Evaluation--Based on the Information Architecture, function specifications and Technical Architecture, what software and hardware are available in the marketplace that will best enable us to accomplish our vision?

* Organization--What organizational changes will be required to manage our new information environment?

* Training Plan--Design and development of information does little good if personnel are not adequately trained in the use, interpretation, and source of the information they are presented. What changes will require training? How do we train? How often do we train? How do we measure training?

* Implementation Initiatives Development and Priority--What are the key initiatives, activities, and tasks required to develop and implement an Information Plan? What are the timing and dependencies of these initiatives? What are the cost estimates for each initiative?

Information planning cannot be a one--time activity. Organization effectiveness must be evaluated continuously and information needs measured against the resources of the organization. Managing information effectively involves organizational processes for identifying new requirements, prioritizing and budgeting for them, and implementing them.

A successful Information Plan considers the culture of an organization. For example some organizations may be very sensitive to the availability of information at various levels of the organization. Some organizations may prefer centralized information management while others prefer end-user initiation and implementation.

Careful consideration must be given to centralized information development versus end-user design and development Organizations may adopt an approach that uses elements of centralized information planning with end-user report development Whatever the final approach, information design and use must be shared with all users. Redundant efforts cost more than centralized efforts and users of information more readily accept change when everyone is involved.