Whether its trying to understand the profitability of customers in a multi-tier distribution model or estimating complex accruals, we can help consumer products companies gain a richer understanding of profitability. We understand that consumer products manufacturing companies consider trade promotion spend a major source of revenue leakage, while distribution companies consider earned income the lifeblood of the company. We can help companies identify and recover pockets of profitability that are hidden in the rules of this complex model.
- Multi-tier customer profitability analysis
- Trade promotion analytics
- SAP and Vistex architecture design
Over the past 30 years, industrial products companies have achieved nearly all of the operational efficiency gains to be had through continuous improvement initiatives such as Six Sigma. The next big opportunity is in managing the profitability of the various products and customers through rich profitability analysis and price/service differentiation. Revenue Innovations can help companies understand their customer segments and align product and service attributes to those segments, resulting in higher profitability.
- Customer contract performance
- Segment margin profitability analysis
- Aligning service offerings to customer segments
Similar to consumer products companies, pharmaceutical companies face the challenges of chargebacks, rebates, accruals, complex contracts, and multi-tier distribution. Revenue Innovations can help solve complex problems in the area of pricing structure and communication, chargeback processing, quote management, and multi-tier distribution profitability analysis.
- Rebate and chargeback performance analysis
- Contract and rebate implementation support
- Harmonization of multi-tier vendor and customer data
Due to the high gross margins in the high-tech industry, the challenge to understanding true product and customer profitability lies in allocating traceable costs to the appropriate product and customer segments. The timing challenges of revenue recognition coupled with the lack of traditional variable costs make profitability analysis an art more than a science for high-tech companies. Revenue Innovations can help bring some of the science back to profitability analysis and assist with the change leadership necessary to implement positive change.
- Traceable cost allocations
- Service offering alignment to customer segments
- Forward-looking profitability analysis based on revenue streams and estimated costs
Agriculture companies depend on their ability to manage contracts on both the buy and sell side of the business. On the buy side, managing seasonal grower contracts and accurately paying for product based on quality and yield is a constant challenge. On the sell side, managing the profitability of customer contracts and the spread between the inputs and the finished product is compounded by timing differences. Revenue Innovations can help agriculture companies manage the contracts on both sides and build a profitability analysis process that considers the complexities of the industry.
- Grower contract management sensitive to quality and yield parameters
- Pricing structure and communication
- Contract calculation and payment processing