Establish’s Profitability Navigator adds the intelligence to big data by leveraging techniques and algorithms based on 40 years experience from operations in some of the world’s best known companies to allocate costs and revenues to the right entities. This will give you a unique understanding of profitability drivers beyond traditional averages and established “truths”.
In Establish’s Profitability Navigator, we utilize an activity-based costing methodology to allocate costs to the lowest defined dimension and assess the profitability drivers and the characteristics of the component elements of the factors that in combination, impact profitability – positively and negatively.
The input comes from data that is generally available at most companies combined with supplementary data depending on focus.
The Profitability Navigator is typically used to:
Identify the profitability drivers at granular SKU/Supplier/Customer level and analyze meaningful aggregations and combinations of those drivers.
Analyze and simulate price elasticity
Build investment business cases
Analyze the full effects of incentives
Establish profitability analytics consulting uses Schening’s Profitability Navigator, which measures multi-dimensional profitability at detailed levels. The dimensions could typically include:
- Time period
The model can also be developed into a tactical tool to:
Monitor profitability improvements
Prepare what-if analyses
Establish profitability analytics offers:
Very flexible solutions
Experience in business operations, mathematics and customized analytical tools
External benchmarking to complete the internal data
Strong module for handling of discounts, rebates and incentives
Contact us for more information on our services.