Earn, Turn, Grow
Earn, Turn, Grow reflects the strategy and the framework behind the Wolseley Way, which details the five key areas that differentiate us from our competition:
Leadership Development
Business Improvement
Sourcing
Supply Chain
Growth
Wolseley has made a video about the Earn, Turn, Grow initiative . Although intended originally for employees, the film explains the background to our inititive and can be viewed online.
Earn is growing our profits at a faster rate than our sales by:
managing our costs more efficiently
improving our operating margin,
better cost control through efficiency on eg labour, IT, indirect spend,
more profitable sales
reducing “COGS”, cost of goods sold from 72% of sale
improving our business processes ie through the Business Change Programme
improving the customer interaction through advertising, product information, skilled sales staff, impoved billing and invoicing network and logistics efficiency
staff training and incentivising.
Turn is generating more cash each year by :
managing our working capital to release cash that would otherwise be tied up in the business.
better use of property – asset efficiency by reducing real-estate total cost of ownership
improved terms on property and facilities
improved inventory efficiency eg better demand forecasting
divest low demand/obselete inventory
improved receivables and payables terms eg tighten credit terms and lengthen payment cycles
offer incentives for accelerated/on time payment by customers
improve maintenance and utilisation of IT systems
Grow is :
continuing to grow our business at a double digit rate each year, through organic and acquisitive growth
organic growth eg retain and grow current customers & suppliers
sweat the bricks – asset management
increase like-for-like sales
acquisitions growth – new territories, customers and suppliers
continued investment
quality of earnings
optimize sales and marketing
improve quality and reliability of products and services
improve supply and demand management
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