To remain competitive, companies must be able to identify the products that are profitable and not profitable. This is no easy task when it involves huge product lines, operational complexity, multiple vendors and diverse customer requirements. Without a clear understanding of which products are making or losing you money and why, your strategy and pricing decisions will steer you in a dangerously unprofitable direction.
Meaningful profitability analytics look beyond revenue and gross margins to uncover hidden profits and losses. By factoring in the real costs associated with each product, you are able to make adjustments – operational and financial – that favorably impact your bottom line.