Do you want to be part of the next “big thing”?
Profit Optimization is the next revolution building on the work of Sales and Operations Planning. Combining the proven power of cost reduction solutions with the ever evolving capabilities in demand shaping, Profit Optimizer tools integrate disparate parts of the value chain into a powerful engine of efficiency and profit enhancement. It drives profitable growth through the simultaneous optimization of the supply-side and demand-side functions.
Moving beyond “volume-only” focus to optimize the demand and supply sides of a business, Profit Optimization looks across the entire enterprise to enhance profitability. When mismatches of supply and demand occur – as they always do – they should not be viewed strictly as a supply chain problem or a demand problem, but rather as an opportunity. By tightly integrating demand shaping actions (e.g. pricing, promotions) on the demand side with the complex and ever changing conditions of the supply chain, Profit Optimization ensures that you make the most profitable use of all of your critical assets. Coordination becomes real synergy because functions across the organization are unified around a common goal: ensuring that the right products are offered to the right customers, through the right channels, at the right price in order to enhance profit – all at maximum efficiency.
The opportunity that Profit Optimization represents has arisen through the combination of two major enterprise platform trends: (1) new forecasting and demand shaping methods and (2) cutting-edge supply chain management techniques. The first addresses the demand side; the second addresses the supply side of business. Profit Optimizer tools address both simultaneously.
Profit Optimization enables a company to answer such questions as:
- How should we price our products to make best use of our manufacturing capacity, raw materials, storage, and distribution capabilities?
- What is the optimal price at which we should commit to an order? And at what price should we be willing to walk away from the business?
- What is the most profitable method of fulfilling the order?
- Should we delay or reject an order in anticipation of more profitable future customers?
- What is the least expensive way of stimulating demand when sales are lagging (e.g. below plan or when a competitor has reduced its price) or specific sales objectives must be met (e.g. end of quarter) or the pipeline cleared (e.g. for a new product introduction)?
- How should our capacity/supply chain be adjusted for specific strategic objectives such as market share targets, competitor positioning, Wall Street expectations, and other goals?
All companies want to increase efficiency, reduce costs, increase profits, and deliver customer satisfaction. By tightly integrating demand shaping actions and supply chain actions, Profit Optimization provides companies with the tools they require to quickly and effectively achieve those goals.
With Profit Optimizers, companies can create the ability to:
- Shape demand to consistently maximize throughput
- Enhance margin across the value chain
- Enhance profit across channels and segments
- Manage product life cycles effectively
- Respond rapidly to competitor actions
- Respond rapidly to changes in the market
- Reflect strategic objectives such as increasing market share, protecting market share, and maintaining brand image
Companies that adopt Profit Optimization will gain broader operational, organizational, and strategic competitive advantage over their competitors. Operationally, such companies can regularly and consistently apply assets and resources toward increasing revenue. Organizationally, they can become much more responsive to customers. Strategically, they can maintain and extend their position by increasing their ability to deliver quality products by rapidly responding to changes in demand and to competitor initiatives. Above all, they can achieve dramatic gains in the area that continues to drive shareholder value – the bottom line.