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Product
and Customer Profitability
By
providing a close up view of all of the component elements of your
profitability and identifying your core, most profitable products and
customers, SBM: Profitability Analysis enables you to focus on the
top performing areas of your business and proactively steer your
company by margin.
The
profit calculation in SBM: Profitability Analysis is designed to
make the best use of the data you have available, so in order to
calculate profitability in a way that is right for your business it
provides a set of analytics that let you decide how to calculate your
product and customer profitability:-
-
gross
contribution,
- Profit
Per Minute,
- Return
On Assets
- as
well as the classical gross to net margin analysis
can
all be used to show how each customer, product and resource is
generating revenue and profit for your business.
Product
costing,
actual
costing
and resource
planning
provide fast and accurate calculations of standard, actual and
forecast profitability as part of their standard output and, because
SBM: Profitability Analysis understands your product structures, you
can see clearly where profit is being eroded by non value added
elements as each product goes through the manufacturing, sale and
distribution process.
By
decoupling resource and activity consumption from the price and
costing process SBM: Profitability Analysis makes it easy to
accurately forecast future profitability. Using its 'What If' scenario
planning
components you can simulate the profit and revenue impact of changes
to sales prices and the product mix, use different price tables
to examine the impact of changes to the cost of materials, energy and
labour and, using fast track substitutions, you can quickly model and
understand the effects of changes to the way in which activities and
resources are used and materials consumed.
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