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How We Help: Integrated Business Planning & Beyond

 

Turning Data into Visibility and Better Profits

As the saying goes, “You can’t manage what you don’t measure.”  In practical terms, this means that understanding the commercial and operational changes required to deliver superior investor returns must begin with aligning metrics with the results investors actually want—more total EBITDA dollars from the enterprise in a given period of time.  This starts with the integrated business planning process and permeates throughout the business as complex manufacturers make profit optimization decisions.

By supplementing the traditional profitability metric of “margin per unit” with the metric of “profit per hour,” executives and managers gain stunning new visibility into the choices they can make to deliver the results their investors demand.  Revealing hidden pockets of revenue and profit growth buried within a mass of untamable data, the Profit Velocity approach helps manufacturers generate more revenue and profit from the same assets and cost structure to drive shareholder value to new levels. Once the  profit per hour metric is applied to even one part of the integrated business planning process, whether its sales and operations planning, product and customer portfolios, or supply chain planning, business will start to reap the rewards and see continuous profit improvement as it spreads throughout the business.

Engagement Areas

Manufacturing Profit Optimization

Product Profitability

Product profitability analysis requires having a detailed understanding of not only which products produce the most profit, but also which products produce the most profit fastest. Profit Velocity enables manufacturers to navigate their complex product portfolios with new insights into which products to prioritize, which products to push to customers, and which products sales teams should be more aggressive with pricing.

Customer Profitability

Similar to product profitability analysis, customer profitability analysis requires an in-depth understanding of customer profit speed.  The advantages of customer profitability analysis are numerous. Profit Velocity provides a common metric that allows manufacturers to build consensus on how to measure customer profitability, identify winning customers and construct the most profitable customer product portfolios.

SKU Rationalization

Developing a SKU Rationalization Methodology or SKU Rationalization Process can be a daunting task for any manufacturer.  Profit Velocity equips decision makers with SKU Rationalization best practices and insights needed to make the best decisions.  Whether the SKU Rationalization exercise is designed for inventory reductions or to make room for new product introductions, Profit Velocity helps provide the answers manufacturers need.

Growth Priorities

Organic growth analysis is critical to choosing the right products, customers or markets to aggressively pursue. Profit Velocity’s time-based metrics provide an avenue that enables   Whether the SKU Rationalization exercise is designed for inventory reduction or to make room for new product introduction, Profit Velocity has the answers manufacturers need.

New Bid Pricing

Creating a new customer bid or new customer proposal is often filled with a number of questions: how much should we charge new customers, what products to push, where can we give customer discounts, how do we organically grow customer accounts? Profit Velocity’s integrated business planning platform enables businesses to answer these questions and maximize the potential of each new bid.

Plant Network Tuning

Whether it is dozens of facilities scattered across the globe or one local factory, plant network tuning is a key aspect of any profit optimization process.  Knowing which products to produce on which production lines, which products to produce at which facilities and which assets are your fastest earnings provides new insights into plant operations. By leveraging Profit Velocity, operations managers and analysts can fine tune their facilities to align with executive strategy and encourage major EBITDA gains.

New Asset Evaluation

Capital expenditure due diligence is a key process step to any new asset evaluation. Profit Velocity reveals the true profit potential of new assets by enabling analysts to simulate new production scenarios, new product mixes and improved customer order fulfillment, all on-demand. This allows analysts to not only forecast the return on investment for a capital expenditure, but also simulate improved operations and best practices.

New Product Investment

Many manufacturers produce dozens, if not hundreds of new products every year. This creates a revolving door of “best products” that can be skewed by traditional metrics such as revenue or margin per unit.  With product portfolios ranging from hundreds to thousands of products, manufacturers are often left in the dark about where a new product falls in their rankings, how much to invest in a new product or product line and what benefits they can expect to see from such an investment. Profit Velocity provides clarity despite this complexity by enabling manufacturers to quickly and easily simulate new products.

Make vs. Buy

Sometimes manufacturers are faced with a tough question: should we make a new product or should we outsource production of a new product. Each option has unique benefits and potential shortcomings, but many of these aspects are often missed without the power of Profit Velocity’s time-based analytics.  Profit Velocity enables business users to simulate multiple scenarios into their business planning activities, thus allowing manufacturers to enhance their decision making process.

Profit Modeling

Profit modeling, S&OP forecasts, projected earnings and financial forecasts are typically done as high-level summaries.  Profit Velocity enables executive level reporting, but also provides unparalleled access to crafting detailed and nuanced forecasts based on specific customers, products or machines.

Engagement Process

Our process is structured to rapidly identify and quantify immediate and ongoing revenue and profit growth opportunities invisible to even the most diligent teams relying on traditional margin-based performance metrics.  Whether you’re an investor, an executive, or a consultant, Profit Velocity can design a project that fits your particular situation.  Projects range from lightning quick Due Diligence assessments to short-term profit improvement evaluations, to ongoing relationship with regularly scheduled updates including enterprise-scale “what-if” simulations, and ongoing continuous profit improvement programs.  Our overarching goal is to deliver the greatest customer value in the briefest possible time for the highest possible return on investment.
Turning Data into Visibility and Better Profits

If Profit Velocity’s innovative approach to achieving breakthrough financial results for complex manufacturers intrigues you, please contact us so we can open a dialog that will explore your potential to deliver superior results to investors.

Improved product profitability.