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Profitability Checker

Which Customers are Draining Your Profits?

Cost to Serve is powerful technique used to identify those ~ 10% of orders likely to be loss makers.  Using your sales history, inventory and master data, our analytics software will;

  • Determine your high level ‘cost to serve’ at four cost levels.
    1. Revenue
    2. Revenue less COGS (Gross Margin)
    3. Gross Margin less Inventory Carry Cost
    4. Gross Margin less Inventory Carry Cost less Outbound Freight (if available)
  • Identify your loss-making SKUs and Customers at each cost level.
  • Tell you what you need to do to correct unprofitable SKUs and Customers.

Typical Benefit: ~ 10% reduction of unprofitable orders

Who is it for? Supply Chain Managers interested in fixing unprofitable orders.

What you get? In the profitability checker we’ll apportion a number of product and your supply chain costs to your order history. From this we can drill down to determine profitability at a SKU and Customer level.

Did you know that ~10% of your sales orders could actually be loss making? A high level cost to serve analysis is one easy way to find out which of items and customers may be unprofitable. After identifying the guilty SKUs and Customers, we’ll give you some recommendations on how to plug those profit leaks.

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