Solutions
Profitability Improvement We help you remove inefficiency in your business in weeks not years to make an immediate and lasting impactOperational effectiveness is one of the most impactful cost reduction and profit improvement levers your company can use. You can operate better – faster – cheaper while providing a high level of service and products. To be a leader in operating efficiencies, you need insight into your business processes and activities - by location, and enterprise wide – including the capacity and cost consumed by each. Organisations implement operating efficiency initiatives to achieve cost transparency and excellence in their business. Cost transparency is the clear understanding of what services and goods cost and why. In this case, cost transparency is specifically focused on your internal provisioning, consumption, and utilization of capacity. Effective profitability management offers significant performance improvements. Today however, the data is frequently isolated in individual applications, such as procurement, finance, and sales. It can be too difficult or expensive to pull the needed information into a meaningful holistic view. By focusing on the three core business drivers (customers, products and processes), enterprises can target initiatives that directly affect profitability. Companies that leverage cost analytics to focus on cost reduction can experience reductions of 3%–5%, while those that focus on profitable growth and revenue initiatives can achieve 5%–15% improvements. For example, a €600 million company can expect to add €80 million in annual profit enhancement by using this approach.
Unfortunately, costing data is frequently isolated in individual applications, such as procurement, finance, and sales. It can be too difficult or expensive to pull the needed information into a meaningful holistic view. Cost analysis decisions may rest on high-level or aggregated data of questionable accuracy, while the real value rests in the ability to identify, highlight, and examine each cost element piece by piece. Below you find our IMPACT engagement which explaines our way to deal with Profitability Improvement engagements. For your information we have also attached an article about Time Driven Activity Based Costing. Interested? Please leave your phone number here and we will call you back as soon as possible to make an appointment. |
IMPACT e-brochure NL.pdf