Smartly Pinpoint Significant Cost Reduction Opportunities
Unwarranted Costs Associated with Unprofitable Customers
Everyone of your customers provides a specific profit contribution to your Quarterly Earnings. It may be very positive, marginal or negative. Clearly knowing and trusting profit performance information at the Customer / SKU level goes beyond what is typically available in a P&L Statement. Having this information on a repeatable basis can lead to actionable strategies on sourcing, pricing and customer related operating costs. For most companies, not having this information leads to a “one size fits all” approach.
A previous client had a typical complex supply chain network of manufacturing locations, D.C.s, local service centers, their own private fleet and third-party service providers. Their network serves 110,000 customers across the United States. Want to guess how many customer locations provided 80% of their operating margin on a repeatable basis?
