Smartly Finding Significant Cost Reduction Opportunities
In this tough operating environment, companies are often forced to use a generalized strategy on cutting costs in key areas like minimizing supplier replenishment orders
Importantly, the specific total cost-to-serve and profit performance contributions by SKU, Customer and Channel are buried and certainly not visible through the P&L. So what is at stake? Hidden opportunities to realize significant cost reductions while increasing profit margins!
Case In Point: The following table shows the segmentation of customer performance by unprofitable customers (Unprofitable column), marginally performing customers (Bottom 4% column) and very profitable customers (Top 96% column). The same analysis can be done by products, markets, regions and channels.
