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Acorn Systems Helps Companies Increase Profits in a Down Economy

Software Increases Profits at More Than 80 Companies

Houston, TX — Feb. 8, 2002 — At a time when companies must prioritize their spending based on what will deliver the highest return on investment, one company, Acorn Systems, offers a more compelling return: increased profits.

Acorn Systems has increased the profits of more than 80 companies by up to 100%. In one case, Acorn was even able to make an unprofitable company profitable for the first time in five years.

Acorn Systems customers can do more than just measure their satisfaction at the bottom line. For the first time, these companies can understand why a customer, product, supplier or order is profitable or unprofitable and use this information to take actions to increase profits. Common changes include setting order minimums, changing pricing structures or charging for value added services. Because the implementation time of Acorn is short, typically two to three months, customers start reaping benefits quickly.

Conco Food Service, a large food distribution company and long-time customer of Acorn Systems, saw immediate impact from using Acorn's solution.

"Acorn's results astounded us," Pete Algero, Controller of Conco Food Service, said. "We knew one of our divisions had some issues causing a continued loss, but we were pretty shocked at first as to the reasons. Acorn was able to clearly show us how one division was losing a substantial amount of money each quarter. We used this information to improve the way we do business. In less than a year, we had recouped our entire investment in Acorn's software and services and were still adding more money to the bottom line."
"Only Acorn Systems captures line-item detail that enables a company to understand why a specific cost object, such as a customer or order, is unprofitable," said Leland Putterman, CEO of Acorn Systems. "In order to understand what to do to increase profitability, you first need to understand why costs and profitability are where they are for each customer, product, order and vendor."

Acorn's solution provides real-time analysis and data, and focuses on actual products and orders to get companies the vital financial data that they need to operate efficiently. With Acorn's industry experience across multiple verticals, their team has a unique understanding and proficiency that allows them to implement their enterprise products in weeks to months and begin delivering results within a quarter.

"Acorn Systems' solution accurately captures indirect costs and drives these costs to the order level," said Putterman. "Other companies have indirect costs that are the same or close to the same for customers, products and orders, so it is clear to us that they are using averages and providing inaccurate information on which to make decisions. Acorn separates itself from these companies by providing numbers in real-time that can be used to make instant, educated decisions that will benefit the company."

Acorn's software can optimize the profitability of any customer, supplier, product or even order dynamically or on an ongoing basis. Acorn customers use this new visibility into net operating profits and profit drivers to identify and spread best practices and negotiate for "win-win" profitability increases with customers and suppliers. Together, customers and suppliers can identify causes of lost profits, optimize incoming orders, identify and grow the most profitable products and customers, and empower employees to drive profitability.

About Acorn Systems, Inc.
Founded in 1996, Acorn Systems is the leader in profit management and optimization solutions. Acorn Systems helps clients measure, analyze, predict, and then optimize Net Operating Profits at any level of granularity desired including products, vendors, customers, even individual orders, in order to maximize shareholder value. Acorn's clients come from many industries including Metals, Foods, Electronics, Paper, Healthcare, Industrials, Chemicals, and others. For more information, visit www.acornsys.com, or call 1-800-98ACORN.

    • We had been using profitability information for strategic decisions for 15 or so years, But theres a big difference between occasional use of a system and bringing profitability measures into the mainstream of the companys
    • business.
    • Rhett Bratt, VP of profitability analysis
      Charles Schwab
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