Financial Simulations for Product Cost Management and Customer Profitability Analysis

While there are a number of business systems and analytical tools that allow business users to perform backward-looking performance monitoring, simulation capabilities are required to anticipate the effect that future changes in material or component costs may have on product and customer performance. pVelocity’s sophisticated Profitability & Cost Simulation Software employs predictive capabilities built on actual cost data to simulate multiple, detailed alternative scenarios and assess their possible impact – answering questions like:

  • What can be done about the “Top 10” profit destroying customers?
  • How will next quarter’s margins be affected by changing material costs?
  • How much of a price increase, by market,customer, or product is needed to offset the cost to serve?
  • Will my sales and pricing strategies produce the desired results?
  • Where should I focus my investment strategy based on the relative profitability of markets and territories?

Gain Immediate, Detailed Insight into Your Product and Customer Portfolio with pVelocity

  • First identify your strongest and weakest performers in terms of profitability
  • Then simulate alternatives, tactics, and strategies based on actual cost data
  • Follow with the collaborative actions that will improve the contribution of the weakest members of the group

With Actual Cost Data, You Can Take Action On

  • Pricing strategies based on fluctuating production costs
  • Margin opportunities currently concealed in silos across the enterprise
  • Product portfolio optimization and future product development
  • Supply chain improvements - materials, packaging, freight etc.
  • Asset utilization, production processes, and planning

Take Immediate, Corrective, and Strategic Action through Segmentation Analysis

Using pVelocity to drill further into your data, you can identify what products your low performers are buying, and segment them to reveal the best and worst performers in the portfolio. In addition, you could also dig deeper to retrieve the P&L of a low-profit customer and discover why its margin contribution is so low.

Whatever your path of discovery through pVelocity,segmentation will quickly uncover multiple insights and help key operational roles make informed decisions and create collaborative workflows that lead to margin building actions.

Access more Information on pVelocity