Profit analytics

Profit analytics targets profitability improvement both strategically as well as granularly.  High level profit strategy analytics takes many from.  View cases, note especially profiles 03, 05, and 14. 

On an operational level, it's about granularity.  To make decisions on issues such as customer profitability or sku rationalization, you have to understand the detail.  We accomplish this on three levels:

1. Price

2. Cost-to-produce; and

3. Cost-to-serve

To understand pricing strategy, you have to know your received or "pocket price".  Pocket price includes all of the off invoice charges (or sometimes, gains) accrued in the ledger, but not on the invoice.  For example, many companies have rebates, freight, volume discounts, warranty expense, promotional expenditures, etc. that are captured only on a ledger, but not driven back to the specific customer.  Our pricing analytics will resolve this, notably, see case 13.

Cost-to-produce and cost-to-server is about complexity - that must be quantified and communicated. We accomplish this via cost - with complete audit-ability and with the capability to integrate the work into your existing ERP system. Identify profitability and determine target cost opportunities in the manner that makes sense for your business - by item (sku), by customer, by channel, by order and more.

This allows you to individually determine profitability and use complexity profiles to identify specific steps to improved profitability.  Drive lean process improvements with target costing.  Use matrix analysis to create manageable decision models across thousands or hundreds of thousands of items. 

If you are concerned about the cost of ownership and implementation of "enterprise costing" or "enterprise pricing" software, come to us.  We bring the expertise and experience utilizing and leveraging your existing systems - providing you with the results and agenda for action. 

View cases, note especially profiles 02, 04, 07, and 10.