How would eliminating a customer or a product impact your profitability? How much will it cost if you increase production by x%? These are important questions to answer, but most organizations hold too much data, in various formats, to perform accurate profitability analysis.
Prophix’s profitability analysis software enables companies to feed their operational plans by evaluating key profitability measures such as profit margins, gross profit, operating profit, pretax profit, net profit, and profit and loss statements. Managing the calculations and allocations, using past performance as a touchstone, and accurately reporting and sharing the evaluation of profitability—what could be more important? After all, maximizing profitability is the primary goal of all businesses.
OTHER BENEFITS INCLUDE
Increased accountability and insight into the company’s information, with the ability to answer such questions as…
How can we effectively reduce costs and optimize performance?
Which products, services, channels, or customers should we maintain, adjust, or discontinue?
How are direct and indirect costs assigned to products, customers, services, and distribution channels? Which should we investigate and redesign?
Do we have capacity to increase the production of a specific item (or sale of a service)? If so, how much will it cost?
What is the impact of idle capacity on the total cost of a product or service? If we reduce idle capacity by 5%, how much will our profitability increase?
Why are we reporting losses for a specific customer? Does this relate to the products that the customer buys, the negotiated terms, or the unique demands of serving this customer?
Report positive results using visual scorecards and dashboards
Quickly deliver precise information regarding profitability in order to influence decision making
Evaluate ways to change the business to improve profitability; analyze potential adjustments with a pro forma income statement
"With Prophix giving us a full understanding of our financials and how they relate to decision making, we hold our people accountable."