Distributor Profit Analysis
Unlock deep insights into your company's profitability
When it comes to distributor profitability, elite companies measure and manage key drivers and outcomes. Where executives are familiar with their company’s income statement and core underlying performance metrics, it’s critical that front-line teams have an understanding of the profit impacts of their day-to-day processes and actions.
ProfitGPS™ provides the critical visibility needed to significantly improve profitability. The ProfitGPS™ dashboard breaks true operating costs down to the transactional level, allowing you to build up a variety of views into profitability trends across your organization.
This unique level of visibility helps you make smarter operational business decisions that can deliver sizable impacts to your bottom line.
Distributors have significant profitability variance across each of their:
Products
Profitability on a per-product or product line basis goes far beyond gross margin.
Vendors
Varying sourcing practices and processes result in inconsistent margins based on vendor.
Branches
Operating costs per warehouse or branch can significantly alter net profitability on a sale.
Customers
Specific cost-to-serve factors create profit inconsistency. in individual customers and customer groups.
ProfitGPS™ gives you visibility into each of these critical elements of your bottom line.
SPARXiQ’s study of distributor data has shown that companies commonly lose money on a significant percentage of their invoice line items due to variable cost factors. ProfitGPS™ accurately allocates cost-to-serve factors down to the line-item level to provide insights into what is increasing, or draining, your bottom line profit.
Customer Profitability
Gain insight into which customers are helping increase profit, and which are decreasing it. Beyond visibility, ProfitGPS™ enables you to also see the impact of shifting volumes, margins, order sizes, and activity costs. With the right information, you can seize opportunities and correct deficiencies on a per-customer, per-territory, or per-branch basis.
Product Profitability
Identify your most profitable products in order to inform product focus and promotion. Inversely, gain an understanding for what the least profitable products are and build a plan for reducing their negative impact.
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