Management of Profitability
Over 75% of decision-makers perform cost analysis by product and they plan detailed reporting on customer profitability*.
Although growth is the number one priority for finance departments, performance management is not possible without detailed cost analysis, to gain a clearer insight into the impact decisions have on profitability and to effectively inform decisions on product and service offers, by distribution channel, by family of customer, by market etc.
Managing profitability, your challenges:
- Understanding the real cost and profitability factors within your enterprise
- Increasing margins and ensuring profitability
- Tracking and understanding the composition of costs by product, customer, market, distribution channel etc.
- Modelling the most appropriate cost calculation system for your activity, in order to identify levers for action
- Improving the alignment of resources
- Simulating the impact on costs and profitability of the opening of a new market or the deployment of a new distribution channel
- Collecting, in a structured way, all the cost drivers required for the defined model.
*source : Oracle survey
Our response: modelling your cost analysis
The cost calculation process that underpins the profitability analysis is a non-standard process and is unique to each individual organisation.
What’s more, it is a sometimes complex process (involving numerous cost allocation cascades in order to achieve the desired analytical precision) that generally calls for a significant volume of data.
The integration of a cost calculation system into the information system can very quickly turn into an impenetrable jungle.
On your behalf, they bring all their experience to bear in implementing:
- A cost calculation model of sufficient flexibility to facilitate maintenance and scalability,
- A configuration that guarantees the traceability and readability of the makeup of costs,
- Analytical modelling that reflects your business and effectively informs decision-making,
- Processes that make it possible to acquire high volumes of information in a structured and traceable way and which allows frequent refinement of the model according to the assumptions adopted,
- A solution that can be used to good effect by management controllers.