Vendor Profitability

Vendor profitability, simply defined, is the difference between the revenues earned from, and the total costs associated with, a vendor (and its related products) over a specified period of time. Typically a very small percentage of your firm’s best vendors account for a large portion of your net profits. Conversely, a small percentage of your vendors usually cost more as business partners than the revenue they deliver. These unprofitable vendors detract from overall firm profitability. Profit winners and profit losers are a natural consequence of the variability in the revenues and the true costs related to certain vendors. With vendor profitability insight, you benefit from knowing exactly which vendors create value, which destroy value and why.

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Additional Resources

Profit Improvement for Retail

Profit Improvement for Distributors

Profit Improvement for Manufacturers

Customer Profitability Analysis

A Better, Easier Way to Improve Warehouse Operations

Building the Profit Focused Supply Chain

Full Life Cycle SKU Rationalization for Retail