When we analyse client cost profiles a familiar pattern emerges; 20% of customers may make 180% or more of your profits, 60% may make you nothing and 20% may actually lose you 80% of profitability, with customers over- expending their proportion of your capacity. The problem with traditional allocation methods is that they either apply broad brush methods and bear little resemblance to what actually drives the cost, or they use traditional Activity Based Costing (ABC) and over complicate the allocations; making it difficult to trust or interpret the results.
Using Acorn to understand how individual transactions drive cost into your organization lets you identify your unrealised profit potential and where and how you can achieve it.
PDF 229 KB
PDF 275 KB
Extended Supply Chain Conference: Celebrating its 11th year in London on Tuesday 12th and Wednesday 13th March 2013
All content © 2013 Avisen UK Ltd. All Right Reserved.