CFO THOUGHT LEADER 680: Making Sales Success a Must-See Metric | Ron Knutson, CFO, Lawson Products
A little more than a decade ago, Ron Knutson remembers, when he first stepped into the CFO role at Lawson Products, he quickly realized that the productivity improvements that he was expected to help drive would demand a number of significant infrastructure and technology investments.
In anticipation of the investments that would need to be made, Knutson recalls, he first completed a “competency review” for every member of the finance team, a process that was in part designed to help flag those employees deemed well suited for training tied to future investments.
“We wanted to make certain that we would be training the right individuals,” comments Knutson, who notes that the review ultimately led to “extensive” staffing changes as he sought to lessen the team’s overall dependence on existing systems and use new training to whet its appetite for the adoption and implementation of new technologies, including ERP software.
“Having these individuals go through the implementation process just made them so much stronger coming out of it,” explains Knutson, who credits the new technologies with—among other things—helping the sales team to monitor and interpret customer engagement patterns.
Meanwhile, some of the biggest gains from Lawson’s technology investments may have been occurring inside their system of warehouses, or distribution centers (DCs).
In addition to consolidating the number of DCs from eight to five, Knutson reports, the distributor also significantly lessened excess inventory through the adoption of a demand-forecasting tool that uses historical customer demand patterns to provide Lawson with regular inventory management insights.
Adds Knutson: “We had quite a bit of working capital tied up in inventory, but now we are able to make the right investments in our high-turning items as well as our slow-turning ones.” –Jack Sweeney
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