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Home » Services » Supply Chain Performance Analytics » Profitability Analytics
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Profitability Analytics
What Is It?
Chainalytics' Profitability Analytics combines total cost-to-serve with revenue analysis to help you expose your hidden costs, uncover your profit contribution opportunities, and evaluate the profitability of each product, customer, and supplier in your portfolio. Through a fact-based analysis, clients are able to identify profitability drivers, challenge assumptions regarding products to provide and customers to serve, and modify current strategies and policies that adversely impact profitability.
What Do We Do?
Chainalytics' Profitability Analytics provide a detailed assessment of customer, product and supplier portfolios, so you can evaluate and alter strategies to improve profit contribution. Our approach incorporates activity based costing techniques, Pareto analysis, and transactional data analysis to understand profitability drivers and provide you with a fact-based framework to support portfolio decisions. Using either your existing standard costing methods or Chainalytics Total Cost-to-Serve models, you can effectively analyze the opportunities to modify your customer policies, supplier practices, or product mix to improve your overall profitability. By using an advanced set of tools, our service provides the unique capability to interactively dive into profiling activities with your team to support what-if scenarios, evaluate inter-relationships between specific customers and products, and determine the specific policies or practices that are impacting profitability.
Can Chainalytics help increase the profitability of your customer, product, and supplier portfolios? Is your firm asking these questions?
- Which customers/products/suppliers are no longer profitable? What are the root causes driving unprofitable results?
- Where should we focus my attention to improve profitability in these portfolios?
- What are the factors impacting my net selling prices?
- How should we segment our customers and products to maximize profits?
- How can I use my marketing and sales budgets more effectively?
- What is the profit impact of specific policies or practices of my suppliers? How can we leverage this knowledge to improve supplier negotiations?
Is It Right For You?
You are an ideal candidate for Chainalytics' Profitability Analytics if your company is looking to improve overall profitability through a rigorous financial analysis of your customer, product, and supplier portfolios. You will see substantial benefits from this service if you:
- Have "one-size-fits-all" business policies for your customer or product segments.
- Currently have limited visibility into true product and customer-specific costs or profitability.
- Currently make customer-specific pricing decisions without regard to total cost to serve.
- Have a high percentage of your customers, products, or suppliers contributing a small amount to your profitability.
- Are making policy and pricing decisions based upon outdated or incomplete information.
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