PROFILE

W. Frank Dell II

President, Dellmart & Company

W. Frank Dell II is President and CEO of DELLMART & Company, Inc. He has been a management consultant for over 20 years and has more than 30 years of consulting and corporate experience. Prior to founding DELLMART, Mr. Dell was Vice President directing Cresap’s Food and Consumer Products Practice and Senior Partner and Director of Case and Company directing its Food and Distribution Practice.

Mr. Dell has performed a wide range of assignments in the areas of strategic planning, marketing, distribution, retailing, operations, pricing, organization, productivity improvement, data processing and research. Clients have included manufacturers, retailers, wholesalers, distributors and trade associations in the United States, Canada, Europe, Russia, Middle East and Africa.

A pioneer in the concept and application of both Direct Product Profit (DPP) and Activity Based Costing (ABC), Mr. Dell has directed numerous major studies modeling the costs of manufacturing, retail food, chain drug and food service industries. He served as an advisor to the Food Marketing Institute, National Mass Retailing Institute, National Candy Wholesaler Association Private Label Manufacturers Association and Comite International des Entreprises A Succursales (CIES).

Mr. Dell was the creator of BICEPS, a state-of-the-art buying and inventory control system; focus marketing and category management organization concepts; customer synchronization and comprehensive customer service operating concepts. His work on Total Company Productivity, Total System Profitability, Supply Chain Management, Vendor Sourcing, Pricing and Total Labor Control has been well received.

Before entering consulting Mr. Dell was Manager of Forecasting & Administration for the Colgate-Palmolive Company. His earlier corporate experience includes work for American Can and General Foods.

Mr. Dell received a B.S. in management from Northeastern University and an M.B.A. in marketing from Iona College. He is a frequent speaker for numerous organizations, including Food Marketing Institute, Food Distributors International and National Grocers Association. The Foodservice Distributor, Progressive Grocer, IGA, IdeaBeat and Grocery Marketing publish his articles. Mr. Dell is a member of Strategic Leadership Forum, Institute of Management Consultants, Council of Logistics Management, Warehousing Education and Research Council, Comite International des Entreprises A Succursales and Food Distribution Research Society. He is listed in Who’s Who and is a Certified Management Consultant.

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  • Posted on: 07/23/2020

    Is there a path to profitable grocery delivery?

    Some time ago I was asked to model home delivery cost structures using the Direct Product Profit (DPP) models. We looked at in-store picking, hybrids of in-store for slow movers, and warehouse for fast movers and a small warehouse. In-store picking has little or no chance of being profitable. First, there are the costs of getting the product on the shelf. Then you replace the checker with picking, packing and delivery cost. Store pickup gets closer by not incurring the delivery expense. The hybrid showed promise, but increased inventory and holding cost limited the success. The small warehouse was the best model. Depending on store density, one small warehouse might support 5 to 10 stores. Manufacturers deliver directly to the small warehouse when economics work. Slower movers are back filled from the chain or wholesaler’s distribution center. Layout supports packing, using case flow rack and pick to light technology. Ideal delivery uses a least travel model to reduce cost. Conclusion is, without practical logistic investment and a plan to minimize costs, home delivery will never be profitable. The only other way is to use the bakery model where the equipment is not charged to the department. Simple, good, clean data helps improve customer service, but good data with a bad operations does not make money.
  • Posted on: 06/16/2020

    Will grocers maintain COVID share gains as restaurants reopen?

    It took 120 years for the Eating Away From Home (EAFH) sales to exceed the Eating At Home (EAH) on a dollar basis. The greatest growth occurred with the increase in working wives. Then that plateaued at 62 percent+, Generation Z or the Millennials carried the sales to 50.2 percent in 2010. In my March 23 post I forecasted supermarket sales increasing 20 percent to 40 percent, which has been right on the mark. Going forward it will take approximately five years for the EAFH sales to exceed the EAH sales. It is likely half the restaurants will never reopen as the owners are bankrupt. Seniors, who frequently eat out, will be slow to return. Generation Z will carry the eating away ball as they continue home delivery.
  • Posted on: 04/30/2020

    What will retail look like if half of department stores close?

    This is not the first time department stores have been projected to disappear, yet they are still here. Early on, the only place you could buy a TV was the department store. Today they do not sell electronics. Department stores are continually evolving with new categories and customers. Just like you don’t try to beat Walmart at Walmart’s game, today you don’t try to beat the internet. Department stores will likely be smaller with greater customer service. They will sell products that don’t really work well on the internet. These will likely require some form of customization. Another area they will excel in will be selling better and best quality products on the internet. Also they will provide a shopping experience the upper middle class and above wants.
  • Posted on: 04/20/2020

    DTC brand sales soar in a time of social distancing

    If you are a CPG company, you must DTC or you will continue to lose market share. I have been advising clients for years to get serious with DTC, including banding with other CPG companies for an enterprise with economic volumes. Unless one wants to pay Amazon, it is time to move forward. After the initial investment DTC provides a greater profit than selling retailers and wholesalers. Format canbilization has reduced item distribution and thus lost sales. Private label continues to gain market share. DTC is a real alternative for CPG growth. Like TV-only products going into retail, DTC will likely be the new product driver. This does not mean new product launches must change, but adding a channel -- your own -- sure will help.
  • Posted on: 04/15/2020

    Is remote working here for good?

    Like casual Friday, work at home will continue to grow. Yes work at home has many positives for both employee and employer, but ... some employee’s simply do not have the work ethic to work at home. Human to human contact is a critical element in generating new ideas and solving business problems. The Internet of Things projects we can move much further into the organization than just desk jobs. Remember early computers were only for accounting functions, now they can manage a factory or warehouse. Work at home will expand. The problem is that the Zooms of the world are not the human interface answer -- we will need more. Maybe we start with work at home Fridays.
  • Posted on: 04/15/2020

    Will Walmart’s daily pickup hour for seniors cause operational challenges?

    Some years ago while walking in an early hypermarket, I commented that I would not be shopping in this store when I was 80 unless they have a bench and oxygen to rest. Food shopping for seniors with pick up solves this problem. While many Walmarts are not the primary household food store, especially for seniors, this will attract seniors and increase sales. While senior sales are lower per household, there are a growing number of senior households. The result is increased sales for Walmart Now the next step is to join the senior non-food purchases with the food purchases for one stop shopping.
  • Posted on: 03/23/2020

    Costco is refusing returns on hoarded items

    Costco is correct for not accepting returns in hoarded products, simply for health safety concerns. Further, the "you bought it you own it" rule works well. Right now, other paper manufacturers are coming on stream making toilet and towel paper products. The panic buying cannot last forever and I forecast a surplus supply within 2 weeks for these products. The bigger food industry issue is the volume switch from eating away from home to at home consumption. The typical supermarket should expect a 20% to 40% volume increase as workers and students are not eating in cafeterias. Further, people are not going out for lunch or dinner. The away from home volume has been approaching the at home volume for years. Short term, some of this volume must be handled by retail and/or internet shopping.
  • Posted on: 02/25/2020

    Was Burger King smart to showcase moldy Whoppers?

    This commercial was a bad idea. Watching the mold grow raises the question: why are you showing me this and is this what I will find in your restaurant? The image was so strong that I did not even hear anything, but only assumed there was a problem. This is not how you promote going to natural foods.
  • Posted on: 01/09/2020

    Will coffee drinkers miss single-use cups?

    For the everyday customer a reusable mug will work fine. Upscale restaurants have lockers where you can store your favorite wine or cigars. Putting a customer’s name on the mug, color coating based on volume and remembering the customer's normal order could be a customer service win. It could incorporate an app: just input you customer number and your order will be waiting, in your mug, when you arrive. The problem is the walk-in customers. Have two different-colored mugs. One stays in the store and one leaves the store. Mugs that leave need a top and have an extra fee attached. This the walk-in customers will not like. To expect customers to walk around with shopping bags and a mug is not realistic. This solves one problem at the cost of lost sales.
  • Posted on: 12/27/2019

    The RetailWire Christmas Commercial Challenge: The Final Competition

    Based on theme, execution and product sales message I rank them this way: 1. Target, 2. Esty, 3. Big Lots, 4. TJX and 5. Macy’s. All were enjoyable, but selling products through a holiday message is not easy.
  • Posted on: 12/19/2019

    The RetailWire Christmas Commercial Challenge: Target vs. Walmart

    Walmart presents an inclusion message, which is nice, but it is only a part of Christmas. Target shows many elements link with products they sell. The stronger Christmas message is Target
  • Posted on: 12/12/2019

    The RetailWire Christmas Commercial Challenge: Best Buy vs. Big Lots

    Best Buy’s commercial revolves around how big of a TV will fit down a chimney. Cute but a very weak storyline. Big Lots is all about decorating the house for Christmas. It shows a range of products that can be found in the store. Big Lots wins easily for selling products.
  • Posted on: 12/03/2019

    The RetailWire Christmas Commercial Challenge: Kohl’s vs. Macy’s

    Kohl’s does a great job of associating football with their product assortment. They attempt to show a wide product range, but Christmas is really an afterthought. Macy’s brings strong Christmas ties and feelings, but banks on the Thanksgiving Parade as an anchor. Macy’s does not tell you what they sell and why you should shop with them. Macy’s wins with a stronger Christmas message.
  • Posted on: 11/04/2019

    Should McDonald’s CEO have been fired over a ‘consensual relationship’?

    Some say the world has changed. First there was the feminist movement now that we have the MeToo generation. Proper manners never change and as I was told in my early corporate life, don’t mess in the kitty box. Companies have rules for a reason including no dating the opposite sex and no relative hiring. Both can cloud or change decision not for the benefit of the company. Yes, he should have been fired just as anyone working for him would have been. There are not different rules for leader and workers.
  • Posted on: 04/19/2019

    Is AI’s impact on demand forecasting more hype than reality?

    No one has a consumer product forecast that works. This is true today as it was years ago. All the research shows the same thing. External factors have significant impact on sales. In our many studies, weather and competitive active have significant impact some times. This variance is classified as the random effect. The real question is why anyone is spending time for forecasting today. We have cheap real-time computing to monitor the entire supply chain. Stop demand forecasting just use demand to run the operations.

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