Manufacturing Results

Results.gears

Creating an
Industry Leader

Summary
  • Major Manufacturer
  • Company Turnaround
  • Profit Improvement: From loss to industry leader

Margins were slim to negative. The company implemented a new performance measurement system that enabled accurate cost insight into all business processes, including net customer, product, and plant profitability. In less than seven years, the company became highly profitable and is now one of the largest in its industry. Every production facility is profitable, and profit margins continue to grow. They now walk away from unprofitable deals, based on Acorn insight. In addition, they provide suppliers and customers adequate profitability margins, strengthening their entire value chain.


Results.elephant

Large Customers
Can Be Unprofitable

Summary
  • Mid Size Manufacturer
  • Customer Profitability
  • Profit Improvement: $3M annually

A manufacturer/distributor learned from Acorn data that one of their largest customers was unprofitable due to incredibly high process costs. They renegotiated with the customer and improved profits by $3 million a year immediately. Other costing systems would have spread the process cost among all customers and gross margin analysis would have shown this customer as highly profitable, making it impossible to identify and fix the problem.