Get insight into cost-to serve and increase profitability

Not all customers are good customers. Some demand more service, some less. Some place lots of small orders and make lots of changes, others have better planning, place larger orders and rarely make changes.

At the end of the day, the cost to serve these customers will differ. But conventional financial accounting doesn't record this. If these customers buy the same mix of products and services at the same price, they will appear to be equally profitable when, in fact one is profitable and the other is not.

How is your company's overall profitability affected if decisions are based upon inaccurate information?

By using Activity-Based Costing (ABC) you'll be able to price each of the activities that your organization carries out to serve individual customers and market segments or to support products or channels. This will provide you with accurate information about the costs and profitability per customer. What's more important, you'll be able to identify the root cause of the costs. This makes it possible to reduce costs and improve profitability.

Learn about the Prodacapo software for Activity-Based Costing/Management »

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For more information contact us or a Prodacapo partner.