The vast majority of companies is unsatisfied with their profitability or have unprofitable customers or products they may be unaware of. The main reason for you to maintain these unprofitable customers or products may be the lack of actionable insights. If you are like most companies, you store the information that is needed for these insights on different accounting systems. That makes it difficult for you to get a consolidated and transparent view of your sales per customer and product segments.
In the past, our clients would need to do a lot of time-consuming manual Excel data crunching. With the new PwC's Profitability Insights Scan they have full insight in their profitability potential within two weeks.
PwC has identified five key reasons for less than optimal profitability:
Strategic disconnection between commerce, operations & finance: in the eyes of the customer, the company does not have a clear strategic identity as either a cost leader or a differentiation player
Tactical disconnect between commerce and operations: internal silo’s between Sales, Operations and Finance prevent integrated decision making on product & customer management
No integrated business & financial performance tracking: Often business and financial goals are not aligned nor measured, which leads to pushing the sales of the products, which don’t bring net profits
Limited insight, fragmented data and low data quality: data is stored in different systems and according to different standards
Incentives are not focused on increasing the bottom-line: Sales performance is often measured by revenues whereas Operations are often evaluated on capacity utilization
Identify most profitable clients and products;
Assign costs to your sales to get the full financial information;
Create actionable insights for steering your sales force;
Identify cross-selling opportunities.
PwC lifted profitability within companies like water technology, material supply and manufacturing of dairy products. We helped our clients to:
redesign & optimize their customer portfolio, which led to visibility improvement, revenue increase and reduced transport costs;
implement a long-term sustainable methodology, which enabled a continuous portfolio elevation;
create transparency of the cost-to-serve elements to improve profitability with the use of the dynamic visualization tools;
In conclusion, PwC can make a quick scan in two weeks, which can be followed by a deep-dive analysis of your business. We can also review your current sales strategies, cost structures on individual product and customer level and provide you with recommendations of the actions required to achieve an optimal profitability.
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