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Acorn Capability and Value
Management Consulting Firm Study Reveals:
• Cost-to-serve expenses account for 16% of total trade expenses
• Cost-to-serve expenses account for 20 to 30% of gross margin
• Customer and product P&L’s are necessary for pricing optimization and profitable revenue growth
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Acorn Capability |
Value to You |
Enterprise Scalability & Performance
Un-paralleled scalability to perform cost and profitability calculations for every customer, product, channel, etc., in your enterprise - inside Acorn’s application – and in a short time period. |
Insight for each customer reflects the true variability in cost-to-serve and the net profitability of related business dimensions like product and channel, creating a solid foundation for a profit focused pricing strategy. This ensures the integrity of price management and optimization. High performance ensures your insight is ready in short order so you can act.
Drive profitable growth with the confidence that prices are indeed profitable (revenue is greater than costs!).
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Unified Model
A unified model links customer cost and profitability to other critical dimensions of your business (channel, segment, org, transaction, order, product, etc.). |
Fewer models to maintain and link together using 3rd party applications means a lower TCO for you – needing less people, processing time and 3rd party systems/software |
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Accuracy
Due to Acorn’s methodology, your model is validated by finance and operations. This ensures the accuracy of profitability measurements, truly representing the sum total of all revenue and expense associated with the customer, including revenue, trade terms, trade promotions, COGS, and the more elusive and challenging elements around ‘cost-to-serve’. |
Acorn’s accurate insight into net profitability (including cost-to-serve) enhances any price management and optimization system due to the accuracy and validity of the data. Downstream analysis is now based on facts and granular information to drive confident decisions – and capture the profit opportunity.
Use Acorn data to feed price waterfalls, segmentation, scatter plots and analytics of all sorts. Use this new insight to make better contracting and pricing decisions.
Empower your front line sales/service teams to make profitable pricing and servicing decisions. Feed this new insight into your price management, sales execution and CRM systems.
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Flexibility
Customers and products are diverse. Acorn provides a flexible solution that accommodates the diversity and variability of customers and products, processes that support them, terms and conditions, behaviors and policies. |
Acorn has baseline solutions for pricing and cost-to- serve modeling, yet collaborates to understand the unique requirements for your organization. You can feed your price management and optimization solution to drive profitable growth. |
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Sustainability
Customer relationships, product mix, business processes, etc., change over time. A solution must be able to sustain its insights into profitability with minimal ongoing maintenance. |
Acorn clients spend more time analyzing profitability and driving performance improvements, not in non-value added activity just to generate numbers. |
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