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Acorn Capability and Value
Our Experience Reveals That Typically:
• <20% of your vendors generate > 280% of your net profits
• 60% of your vendors break even from a net profit perspective
• <20% of your vendors 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 vendor in your enterprise - inside Acorn’s application – and in a short time period. |
Insight for each vendor reflects the true variability in their costs and net profitability. How? By focusing on the transaction level, where variability resides. Acorn can do this regardless of volume size or variability in product and vendor mix. High performance ensures your insight is ready in short order so you can act. |
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Unified Model
A unified model linking vendor cost and profitability to other critical dimensions of your business (product, 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 vendor profitability measurements. Measurements truly represent the total of all revenue and expense associated with the vendor (and their related products), including revenue, trade terms, trade promotions, COGS, and the more elusive and challenging elements around ‘cost-to-serve’ and ‘indirect costs’ associated with specific vendors. |
The complete and accurate view of vendor profitability enables better strategic, operational and tactical decisions around product and service offerings. It also gives you the ability to confidently optimize your overall vendor portfolio, vendor categories and individual products.
Conduct fact-based negotiations with suppliers based on the intersection of vendor and product profitability. Use this new insight to make better contracting, pricing, trade terms and other operational decisions.
Dynamically analyze your vendor categories. Roll up vendor profitability to categories for decisions on pricing, merchandising, sourcing, logistics, etc.
Empower your front line sourcing/merchandising teams to make profitable decisions. Feed this new insight into your S&OP, procurement, and spend management systems.
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Flexibility
Vendors are diverse. Acorn provides a flexible solution that accommodates the diversity and variability of vendors, processes, terms and conditions, behaviors and policies |
Acorn has baseline solutions for vendor profitability modeling, yet collaborates to understand the unique requirements for your organization, ensuring you can understand and action key drivers to vendor profitability. |
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Sustainability
Vendor and product 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 vendor profitability and driving performance improvements, not in non-value added activity just to generate numbers. |
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