Scope

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.


Objectives

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


Deliverables

Establish profitability analytics consulting uses Schening’s Profitability Navigator, which measures multi-dimensional profitability at detailed levels. The dimensions could typically include:

  • Articles
  • Customers

  • Suppliers

  • Store/Site

  • Time period
  • Distribution channel

  • Order

  • Price

The model can also be developed into a tactical tool to:

  • Monitor profitability improvements

  • Prepare what-if analyses

  • Analyze trends


Methodology


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.

Why establish?

Establish Profitability Navigator™

Proprietary software for deep and unique supply chain analytics.

 

Establish Davis Database of Logistics Costs and Services™

North America's longest running benchmarking database of logistics costs and services.

 

Establish Guidelines to Logistics Best Practices™

Tool for auditing supply chain operations.

Establish has a long track-record within business analyticsThe case studies below are just a few examples of achievements from Establish supply chain consultants together with clients within business analytics.

 

 

Profitability Analytics For The Paper Industry

Implementation of Profitability Navigator for coherent business analytics in 20 countries from the local markets detailed follow up to the board’s strategy level