Equazion Partnership to Enable Profitability Analysis
Atlanta – April 1, 2008 - Chainalytics LLC, the leading provider of advanced analytical supply chain services, announced today the launch of its Supply Chain Performance Analytics (SCPA) service line. Through a partnership with Europe-based Equazion, Chainalytics will enhance its already extensive supply chain strategy offerings to include portfolio management, profitability analysis, and total cost-to-serve analytics.
This new service line will assist firms in developing a portfolio management framework that continuously monitors, evaluates, and takes action to improve ongoing profitability to the business. By tying customer, product, and supplier profitability to demand and capacity planning, firms can create and manage a network that balances both cost reduction and profitability opportunities. SCPA will enable clients to determine the key profitability drivers of their supply chain and ultimately create strategies that determine the optimal product mix, customer service policies, and sourcing decisions required to maximize performance.
“Clients have always looked to us to assist them with complex network decisions and now want those decisions to be grounded in profitability,” said Mike Kilgore, President and CEO, Chainalytics. “Our new Supply Chain Performance Analytics service will enable our clients to identify and focus their efforts on the most profitable parts of their business while designing an optimal network to accommodate the factors that add to the bottom line.”
Supply Chain Performance Analytics services will complement and enhance Chainalytics’ already robust strategic and tactical decision-making in the areas of supply chain design, inventory planning, and transportation planning. This new service line is comprised of three offerings:
- Total Cost-to-Serve Analytics. To avoid making policy decisions and allocating resources that turn out to be unprofitable, firms must have a clear sense of their true supply chain, sales, and marketing costs. Total Cost-to-Serve Analytics (TCS) helps clients assign and account for the true cost of serving customers by providing a detailed analysis of all costs that impact demand and supply strategies. Chainalytics’ TCS combines its expertise in supply chain modeling with the use of advanced activity based costing tools to create the cost-to-serve of each product, channel, customer, or supplier in a portfolio — to expose hidden costs at a detailed level.
- Profitability Analytics combines total cost-to-serve with revenue analysis to expose hidden revenue losses, uncover profit contribution opportunities, and evaluate the profitability of each product, customer, and supplier in a portfolio. Through fact-based analysis, clients are able to identify profitability drivers, challenge assumptions regarding products to produce and customers to serve, and modify current strategies and policies that adversely impact profitability.
- Portfolio Management services continuously monitor the profitability of customer, product, and supplier portfolios and takes appropriate actions when change is required. This holistic approach establishes a repetitive, analytical process that aligns business policies across sales and marketing, supply chain, and finance. Through ongoing analysis, firms can create differentiated customer segmentation, develop specific service level and product lifecycle strategies, and tailor supply chain designs to individual segment needs and ultimately maximize overall profit.
“By helping our clients establish formal processes to analyze and evaluate portfolio performance at a more granular level, they can uncover the business practices that may be negatively affecting their profitability and take the required action”, said Tim Brown, Principal, Supply Chain Strategy Practice at Chainalytics.
The benefits of executing these analyses and a general discussion about performance analytics will be the basis of a Webcast, “Evaluating Product and Customer Portfolios in Light of Today’s Stagflation Economy”, scheduled for April 22, 2008. Jeff Metersky, Vice President Supply Chain Strategy, Chainalytics, and Tim Brown, Principal, Chainalytics will discuss the impact of potential stagflation on existing supply chains and how viewing product and customer portfolios through the profitability lens is providing firms some relief in today’s economic environment. Anyone interested in participating in the Webcast may receive more information at www.chainalytics.com.
About Chainalytics
Chainalytics provides leading companies advanced consulting services to improve supply chain performance. Specializing in the application of advanced decision sciences technology, Chainalytics supports improved strategic, tactical and operational decision-making in the areas of supply chain strategy, transportation planning and inventory planning. The company’s powerful combination of analysis, technology and methodology enables clients to achieve and sustain double-digit cost reductions and customer service improvements, resulting in millions of dollars of value creation. Chainalytics serves mid- to large-size enterprises with complex supply chains.
About Equazion
Equazion NV is the provider of Equazion analytical software for business performance management and tactical decision support. Equazion enables manufacturing and distribution companies to measure, manage and optimize business performance by providing a quick and clear-cut assessment of working capital, planning strategy, and product & service cost transparency. Equazion’s integrated time-driven Activity Based Costing model and profitability management solution seamlessly merge sales and operations decisions with financial performance impact. For more information, visit www.Equazion.com.