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Cost and profitability
Three types of project, each for a different need: cut spending without choking the operation, know what each product or client costs and earns and why (multidimensional analysis), or work out the cost and price of a new product.
Sound familiar?
When the numbers don't match the effort
We cut costs every year and the next year they come back.
We sell more, but profit doesn't grow.
We don't know which products or clients make us lose money.
We need to cut costs by 10% without choking the operation or losing sales or profitability.
What do we solve?
Three offers, three different questions
Each one is a project of its own, with its own scope and result.
01
Sustainable cost reduction
We analyze your spending lines and set up a reduction plan that doesn't choke the operation and that your team can maintain.
Answers: where and how much can we save without hurting the business?
02
Cost and profitability model
We build an activity-based costing model (ABC/ABM) that shows what each product, client or channel costs and earns.
Answers: what makes us money and what loses us money?
03
Cost and pricing of new products
With an activity-based costing model we build up the cost of products that don't exist yet, to work out their price and profitability before launch.
Answers: how much will it cost us and at what price should we sell it?
How is it left running?
Savings that last
The difference between spending less and costing less lies in the process and in making the measures stick. That is why every saving is tied to a change in how work is done: spending goes down because the operation costs less. Each measure has an owner and an indicator your team tracks, so it can be adjusted when conditions change.
Technology, enabling complex analysis
Tools we implement in this line
Process and good practice come first; the tool comes after.
Main enabler
CostCtrl
Cost and profitability models with ABC, ABM and TDABC: they show net profitability by client, product, channel and activity, and your team updates them from the ERP.
Technologies via e-CGS, our sister company and technology partner.
Related ideas
Keep reading
Which question do you need to answer first?
Let's talk for 30 minutes and work out which of the three projects is right for you.
