Business Challenges

• Margin on core products running at a loss. The situation is particularly acute across the core product range.
• This situation is unsustainable and there is an urgent need to review margins across the portfolio and identify opportunities for margin improvement and develop a roadmap to deliver these benefits.
• The Critical Success Factor (CSF) is to achieve a positive average Return on Sales (ROS) by 2010 across all business units, products and customer combinations

Solutions

• Development of Portfolio Management tools enabling product managers, Sales team, and the Executive to understand the financial performance of products and customers and model scenarios that improve profitability.
• Segmentation of customer base applying financial and behavioural criteria to identify high and low performing customers and the development of business rules for cost to serve and margin improvement.
• Road map to sustainable profitability: outlining key decisions required to recover, improve and optimise the margins of products and customers

Benefits

• Analytical capability to gain insight in to the financial performance of business units, customers and products
• Strategic portfolio management tools: Customer segmentation, Scenario analysis, Price elasticity, Exchange gains and losses
• Flexibility and scalability to incorporate new customers and or products
• Input into long term planning and strategy
• Provides focus, targets and terms of reference for six-sigma projects