DISTRIBUTOR COMPUTER SYSTEMS

"SUCCESS IS WITHIN YOUR GRASP"

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UNDERSTANDING THE 'MATRIX'

1. Reduce your inventor costs

   Ã'·The DCS system allows you to monitor your inventory accurately and identify overstock, slow moving, and dead stock. So you can liquidate less profitable items and use the money saved for other, more productive lines.

   Ã'·This will reduce your carrying cost while keeping your money in the most profitable items ââ'¬" and you will see a much better return on your inventory investment.

   Ã'·Fact is DCS customers have been able to reduce inventory investment by an average of 27%.

2. Increase your inventory turns

   Ã'·Through improved purchasing procedures you will buy the right items when you need them and at the best terms. You will also be able to maintain your inventory at a level that will significantly increase your turns. With the proper margins, your profitability will increase as well.

   Ã'·Overstock can hurt your profitability as much as dead stock or too little stock. DCS will improve your control over inventory levels and help you achieve significantly higher turns.

   Ã'·Fact is, DCS clients typically experience a 50% increase in inventory turns.

3. Increase your service level

   Ã'·With greater control of your inventory and knowledge of what is overstocked and what is not moving, you can redistribute your inventory investment into fast moving items. The result: You will have the right items in stock when you need them. At the same time, you will raise your level of service well into the 90s. This will reduce your stock problems as well.

   Ã'·Fact is, a 95-98% service level is quite common for DCS clients.

4. Increase your margins

   · DCS gives you much greater control over your pricing. In fact, with DCS automatic pricing you can increase your overall gross margin by controlling it on an item-by-item basis, selecting different margins for stock with different movement.

   · Fact is, wholesalers using the DCS system have increased their gross margins by 3 points, some as many as 7 points.

5. Improve your cash flow

   · With automatic credit checking and the receivables information available through the DCS system, you will stay on top of collections from day one. At the same time, with the cash requirements report you will also be able to take advantage of any purchase discount from your vendors. This combination will help you bring in money faster and improve the cash position of your company â€" Right Away!

6. Improve the effectiveness of your sales force

   · By knowing how much each salesperson, each item, and each customer contributes to your gross margin, you will be better able to move your sales and marketing effort in the most profitable directions.

7. Save money through better management of your payables

   · You will save significant dollars by verifying the accuracy of the billing from your suppliers.

   · Fact is, many DCS customers save 1% and more of the cost goods for stock sales by catching errors.

   · In addition, better tracking of the volume you do with each of your suppliers will give you effective negotiating tools for getting the best buys.

8. Receive management information quickly

   · With DCS you can cut through the paperwork logjam and do invoicing quickly and accurately.

   · Fact is, when you enter an invoice into the DCS system, everything is updated automatically: inventory balances, accounts receivable, daily sales journals, and profitability reports, whatever you need.

   · So management information is current up-to-the-second and accurate. Your staff is free to concentrate on more profitable activities.

9. Take on new lines and handle more sales volume- with additional capital outlay

   · You can use the capital released from inventory to invest in new lines and more high turning stock. In other words, DCS will help you increase your sales without increasing your inventory investment, and it will allow you to handle more sales volume without adding more people.