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Acorn Capability and Value
Management Consulting Firm Study Reveals:
• <20% of your products generate > 280% of your net profits
• 60% of your products break even from a net profit perspective
• <20% of your products lose >180% of your net profits
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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 product reflects true variability in the cost-to-serve and net profitability of each product. This enables you to achieve the level of granularity required to understand product profitability – typically at a transactional level where the variability resides – no matter how significant the volume or variability in product mix. High performance ensures your insight is ready in short order so you can act.
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Unified Model
A unified model links product cost and profitability to other critical dimensions of your business (customer, channel, segment, org, transaction, order, 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 to ensure the accuracy of product profitability measurements. They represent the total of all revenue and expense associated with the product, including revenue, trade terms, trade promotions, COGS, and the more elusive and challenging elements around ‘cost-to-serve’ and ‘indirect costs’ associated with specific products. |
This complete and accurate view of product net profitability allows for better strategic, operational and tactical decisions around product and service offerings. It also gives you the ability to optimize your product portfolio, categories and individual items with total confidence.
Dynamically analyze your product categories. Roll up your product profitability to categories (or bundles, market baskets, etc.) to make decisions on pricing, merchandising, sourcing, logistics, etc.
Conduct fact-based negotiations with customers and suppliers based on the intersections with product profitability. Use this new insight to make better contracting, pricing and other operational decisions.
Empower your front line sales/service teams to make profitable cross-sell and up-sell decisions. Feed this new insight into your CRM system.
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Flexibility
Products are unique and their characteristics within a given industry or company require a flexible solution that accommodates the diversity and variability of products, processes, terms and conditions, behaviors, policies, etc. Acorn delivers. |
Acorn has baseline solutions for product profitability modeling, yet collaborates to understand the unique requirements for your organization, ensuring you can understand and action key drivers to product profitability. |
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Sustainability
Product and service offerings change over time and a solution must be able to sustain its insights into profitability with minimal ongoing maintenance. |
Acorn clients spend more time analyzing product profitability and driving performance improvements, not in non-value added activity just to generate numbers. |
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