Customer/Channel Profitability
In today’s global market, competition is intense and an in-depth knowledge of a company's cost structure is fundamental to its current and future profitability. In such an environment, treating all customers and channels in the same way is not an option. Instead, by understanding the full cost to serve specific customers and channels, a company can better differentiate its product and service offerings, and more effectively make strategic investments and decisions. And with end-to-end supply chain costs equaling 60% to 80% of gross revenues for most manufacturing and distribution companies, the opportunities to generate business value within the supply chain are indeed compelling.
SCE can help, with an approach to customer and channel profitability that focuses on how each channel and customer segment contributes to a company’s profit margins and strategic goals. SCE provides sound contribution analyses that empower company leadership to weigh difficult tradeoffs between pure profit contribution and the strategic portfolio value of specific products and customers. Indeed, our approach is grounded in our awareness that in today’s world, knowing total business unit costs or geographic margins is no longer sufficient.
