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Who We Are: More Than Manufacturing Analytics

Overview

Profit Velocity Solutions is a cloud-based software company serving complex manufacturers with broad customer and product portfolios.  With the rise of big data, manufacturing analytics has come to the forefront of manufacturers decision making by enabling access to new and innovative insights that drive manufacturing profitability improvements. Our unique technology turns data into visibility enabling management teams to achieve previously unattainable levels of revenue and profit performance.  Though not widely understood, the common characteristic undermining the financial performance of manufacturers in industries as diverse as specialty chemicals, textiles, paper, packaging, electronic components, pharmaceuticals, food processing, metal, rubber, and plastic parts, building products, and metals processing is massive “complexity”—the need to serve many different customers with thousands of distinct product varieties from an array of capital-intensive facilities.  The greater the variety of customers, products, and assets, the greater the hidden revenue and profit upside that the PV System can help management identify and capture for investors.

Maximizing the revenue, profit, and competitive position of complex businesses is simply beyond the limits of traditional data analytical tools and methods.  But by leveraging Profit Velocity’s powerful profit analysis and planning platform—with its unique “profit per time” analytics—management teams can realize their company’s full potential for investors.  For over a decade, Profit Velocity has used its unique technology to help investors, management teams, and consulting partners unlock the revenue and profit potential previously obscured by too much data and too little visibility into the fundamental economics driving their complex manufacturing businesses. Profit Velocity reinvigorates traditional manufacturing analytics through its advanced business intelligence analytics software, allowing manufacturers to achieve previously unattainable profit levels. 

Why Profit Velocity?

Traditional data analytics platforms and software vendors, specifically profit analytics, measure in great detail the profit margin each product unit yields.  Taking this fundamental business metric a crucial step further, Profit Velocity also takes into consideration how fast each unit physically flows through key production assets to calculate the “profit per time” generated by those assets when making that item.  This next step empowers Profit Velocity to reveal new insights obscured from other business intelligence analytics software, manufacturing analytics tools and software vendors.

From an investor’s perspective, what matters most is how fast an asset makes money.  Return on Investment always has been and always will be measured per period of time.  While the traditional margin per unit metric is vitally important, it is not the metric investors want to maximize.  To gain complete alignment between the goals of investors and the day-to-day decisions and actions of management, decision-makers in marketing, sales, supply chain, and finance need to know in great detail how fast the products they sell are making money.

Yet until now, the challenges of inadequate data and a lack of effective information tools, particularly in complex manufacturing businesses with bewildering arrays of customers, products, and assets, it has been impossible for management teams to convert data into visibility and precisely quantify how fast each order, customer, product, or asset produces money.  Without access to up-to-date and precise metrics on profit per time, managers have had no alternative but to rely on the profitability figures their conventional systems provide, “margin per unit,” when setting plans, priorities, policies, and prices.  The misalignment between investor time-based goals and management unit-based metrics leads to revenue and profit shortfalls that can be quickly remedied by access to the new visibility the PV System uniquely provides.

manufacturing analytics

For complex manufacturers, the unintended consequence of relying on the accountant’s metric of “profit per unit” rather than the investor’s metric of “profit per time” is to consistently bias management’s choices in ways that substantially slow the flow of revenue and EBITDA dollars.  Ironically, executives and managers who vigorously pursue margin goals are misled into making day-in, day-out choices that actually reduce the revenue and EBITDA results they could readily achieve from the assets if they had access to “profit per time” insights.  By relentlessly striving for higher margin goals, they inadvertently sacrifice total EBITDA dollars generated by the enterprise each month. The results of focusing on profit per time: improved manufacturing processes, new complex manufacturing solutions and manufacturing optimization in production management.

Customers across a broad spectrum of complex manufacturing industries have demonstrated that the same customer and product portfolios, cost structure, and assets can yield at least 5% more revenue—with much of that incremental revenue falling to the bottom line—by leveraging our platform to help management start basing its decisions on the metric that their investors actually need—profit per time.

For private equity investors determined to achieve far higher levels of operating performance that will in turn yield dramatic gains in exit values, Profit Velocity’s breakthrough approach offers unprecedented opportunities to accelerate the revenue and EBITDA flowing from complex manufacturing investments.

Our Proprietary Technology Advantage

While simple in concept, actually putting the Profit Velocity metric into practice that “moves the needle” on both the top line and the bottom line requires expertise and technology.  Thanks to our proprietary information platform, users are able to quickly analyze and make pragmatic recommendations to even the most complex manufacturers.  While many manufacturing analytics tools and business intelligence software often takes months to deploy, Profit Velocity has been strategically designed to avoid this common pitfall of other software vendors. Steadily developed from over a decade of collaborating with customers, our unique time-based analysis and planning platform allows our team to convert a manufacturer’s commonly available transaction data into powerful new insights in a matter of weeks.

Designed to deliver actionable new insights to our customers in the shortest time with the least effort and simplest data requirements, Profit Velocity’s information platform goes well beyond the analysis of historical performance.  Our enterprise-scale “what-if” planning simulation capabilities allows users to quantify the revenue and profit potential of realistic business scenarios.  Tying it all together, our patented “PV Control Panel” provides remarkably deep insight as to why potential decisions will or will not make money faster.