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Profitability & Range Analysis

Using 80/20 principles to create greater business value

This analysis identifies the cost to serve for different product, inventory, supplier and customer segments/channels. It determines true product profitability by factoring in supply chain costs (which are typically overlooked) and identifies which products increase or decrease returns to the business and segments them accordingly.


GRA’s Profitability & Range Analysis Service

Makes recommendations regarding product range and business practices to improve profitability and business performance.


= INCREASED ROI


GRA's Profitability & Range Analysis Service

* Identifies over/under performers (i.e. value-creating and value-destroying products)

Customers vs Products

* Categorises products based on business contribution

Categorization Based On Business Contribution

Products vs Sales

* Identifies product profitability in terms of gross margin and net margin

Profitability Analysis

* allocates activities and costs to products
* identifies opportunity for profitability improvement
* uses statistical modeling to validate business forecasts
* assesses product mix/range against business value proposition
* makes recommendations regarding product mix/range and business practices to improve profitability and better support the value proposition
* improves ranging and new item introduction processes


Download FORMAT
GRA Profitability & Range Analysis PDF


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Articles

Symbion Pharmacy Services leads the way in supply chain optimisation – MHD Magazine

One of Australia's largest pharmaceutical companies, Symbion Pharmacy Services, successfully implemented GAINS and achieved the following market-leading results: inventories reduced by 26%, service levels increased while supply chain efficiency improved.