Drill down to costs and profits in detail
When you know the costs and profits in detail, you are able to provide answers to questions such as:
- Which of my customers are the most profitable ones?
- What is the cost structure of each product and service?
- Which of my business processes are inefficient and most in need of development?
- How have the costs and profits developed over time?
Keys to success
Enabling actions with advanced analytics
Knowing the momentary costs and profits is the foundation of better decisions – but there is still a long way to go. What if you could take a step further, and answer even more complex questions:
- What are our customer segments – taking profitability into account – and how should they be managed to improve profitability?
- How should we treat the customer considering its expected lifetime value?
- What would be the impact of changes in workforce or material costs on profitability?
- How should we allocate workforce to tasks or orders to production facilities to optimize costs?
Profitablity accelerator – fast business benefits
Profitability management is frequently seen as a long and complex project that is difficult to get started with. We at Avarea disagree. Our Profitability Accelerator -service is an ideal solution for successful and easy initiation to the topic and enabler of fast business benefits.
- Conceptualized service providing a systematic approach to start the utilization of profitability analytics
- Takes advantage of activity-based costing method, produces information about products, customers and/or processes
- Easily maintainable calculation model in 6-12 weeks
- Helps identifying the needs for profitability management and sets the ground for further development
Case Valio: Atlas – Up-to-date Monitoring of Sales and Profitability
“Using Atlas has increased trust in our figures and the understanding of accounting cause and effect relationships. Atlas is our most important reporting tool, and the basis for almost all management reporting. With Atlas, up-to-date profitability information is readily available to everyone who needs it, without the finance department having to separately produce it. This frees our time so we can focus on analysing information.”Osmi Hämäläinen, ValioRead the full case story