Profitability Checker

Which Customers & Products are Draining Your Profits?

“Guaranteed” – If you’re not delighted with the results, get a full refund!

Cost to Serve is a powerful technique used to identify those ~ 10% or more of customers and orders likely to be loss makers. We’ve seen as high as 80% of orders being loss makers, and the company never knew!

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 less COGS (Gross Margin)
  2. Then, less Inventory Carry Cost
  3. Then, less Warehousing Cost
  4. Then, less Outbound Freight Cost
• Identify your loss-making SKUs and Customers at each cost level.
• Tell you exactly what you need to do to correct unprofitable SKUs and Customers.

Typical Benefit: ~ 40-50% reversal of those unprofitable orders

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

What you get? In the profitability checker we’ll apportion 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 for most businesses at least 10% of their sales orders are actually loss making?

This high level cost to serve analysis is one easy way to find out which SKUs and customers may be unprofitable. After identifying the guilty SKUs and Customers, we’ll show you how to plug those profit leaks.

“Guaranteed” – If you’re not delighted with the results, get a full refund!

Stop Bleeding Profit: The Supply Chain Profitability Checker

“We knew our supply chain had inefficiencies, but we were shocked to discover we were losing 4.2% of potential profit due to misaligned operations and pricing strategies.” — CFO, Manufacturing Business

Your Supply Chain: Profit Drain or Profit Driver?

Many businesses struggle with supply chain costs without understanding their true impact on profitability. Our Profitability Checker doesn’t just examine costs—it reveals exactly how your supply chain affects your bottom line across every customer, product, and channel.

The Hidden Profit Killers We Uncover

Customer Segment Profitability Gaps

✓ Identify which customers actually cost you money after all logistics expenses ✓ Discover service level mismatches that drain profits ✓ Uncover pricing strategies that fail to account for true fulfilment costs

Product Portfolio Profit Leakage

✓ Pinpoint which products destroy value after accounting for handling costs ✓ Evaluate minimum order quantities against profitability thresholds ✓ Assess product-specific supply chain requirements versus revenue generation

Channel Economics Reality Check

✓ Compare the true cost-to-serve across different sales channels ✓ Analyse omnichannel fulfilment costs versus pricing strategies ✓ Identify cross-subsidisation between channels that masks performance issues

Our Unique Profitability Methodology

📊 Phase 1: Data Integration & Activity Mapping

We combine financial, operational, and customer data to create a comprehensive activity-based costing model calibrated to your specific business.

🔍 Phase 2: Segmentation Analysis

Our team applies advanced analytics to segment your business across multiple dimensions, revealing profit patterns invisible to traditional reporting.

💰 Phase 3: Opportunity Quantification

We identify, quantify, and prioritise profit improvement opportunities based on implementation ease and financial impact.

🛣️ Phase 4: Implementation Roadmap

You receive a detailed action plan with specific initiatives, expected returns, and implementation guidance.

What Makes Our Approach Different?

Unlike typical cost-cutting exercises, our Profitability Checker considers the revenue impact of supply chain decisions. We help you find the optimal balance between service excellence and cost efficiency that maximises overall profitability.

Typical Client Results Include:

• EBIT improvement of 1-3 percentage points
• 15-30% reduction in cost-to-serve for targeted segments
• Strategic realignment of resources to highest-profit activities
• Data-driven framework for pricing and service level decisions

Discover Your Hidden Profit Potential

The Profitability Checker typically pays for itself many times over through identified improvement opportunities.