Today, those records, first kept on columnar paper, are computerized. Tejas Office Products has virtually instant access to any customer's historical purchasing activity.

Topic for discussion: What's the value of maintaining such detailed records? That's a lot of effort. Is it worth it?

Answer: You bet! It costs money to keep inventory on hand. Besides the warehousing and custodial costs, there's the financing cost either with a bank in a line of credit arrangement or the cost of tying up your own money in inventory. With his inventory records, Lupe could see his highest level of purchase activity. His highest purchases were the items with the highest sales volume. The most popular products were the ones he focused on.

But wait! There's more! Lupe uses his inventory records as a marketing tool! He empowers his sales force with the purchasing histories of their customers. And the sales people share this information with their customers and offer them advice and counsel on how to meet their office supply needs more cost effectively. From the customer's point of view, Tejas Office Products is not just selling office supplies; they are providing office management consulting services.

Topic for discussion: What would be the reaction of a customer advised by a sales person to buy a product with a lower price?

Answer: Is there a better way to ensure customer loyalty? As Lupe says, "We may sell $10 less of paper but…" The Tejas Office Products sales person is part of the customer's team, and a valued member at that. It will be very difficult for Lupe's competitors to top that.

You think about it: How are you using data to better serve your customer?