Distribution and Logistics Results

Results.gloves

The Glove Mystery
Global 2000



Summary
  • Distributor
  • Product Profitability
  • Profit Improvement: $10M annually

The company's previous costing and profitability system (with 28 models) forced them to look at product categories, not individual SKUs. For example, the gloves category was unprofitable. They had no ability to drill-down and determine if it was all products or just some. Acorn insight allowed them to look at every product SKU, to find the “losers” and determine root cause. The glove category contained over 27 different products but only a few were unprofitable. They identified and fixed the losers, kept the product category, and increased profitability.



Results.cart

The Small Order Mishap



Summary
  • Distributor
  • Customer Profitability
  • Profit Improvement: Over $4M annually

Once the true net profitability for each customer was provided, the company learned that the bottom 5% of customers lost an average of $10K each. The company responded by either increasing revenue or reducing small and/or special orders with these customers to bring them to profitability. In the first year they attributed $4M in increased profits to these negotiations.