Uncover Opportunities to Improve Poor Performers

Instinctively, you know you have them. You might even be able to identify the worst offenders. But if your business has a complex product portfolio, it is difficult to know where each product sits in a margin continuum. And,as material or component prices fluctuate, what is a margin star today could be a drag on profitability tomorrow.

Determine Product & Market Profitability based on Future Costs & Sales

pVelocity’s Profit & Cost Simulation software moves beyond standard costs and captures actual costs to form the basis for accurate, predictive margin analytics on products and markets, providing rapid insight both on what did happen and what will happen within a forward cost model.

Executives from across the enterprise incorporate pVelocity data and simulations in their daily decision making on product recipes, supply chain improvements, customer & market viability, and more.

Use pVelocity’s Actual Cost Data to:

  • Segment the product and customer portfolio from a margin perspective to determine variances within the margin mix
  • Understand their relative ranking and gain insight into their causes - whether sales, distribution, production or sourcing
  • Model predictions or future scenarios for margin improvement
  • Validate decisions and goals on margin improvements backed by real data

Run simulations that provide actionable answers to questions like:

  • What are the impacts of a change in raw material or component availability?
  • What is the relative profitability of products that consume constrained assets?
  • What price action should be taken to improve performance on a product and customer basis?
  • Where are the product segments and markets that show highest margin growth?

Identify Margin Influencers in Products and Markets

pVelocity’s Profitability & Cost Simulation Software helps identify and integrate all actual cost types and sources into the margin mix, and perform simulations to weigh the effects of different variables on market and product profitability. Depending on your industry focus or operational role, this could involve drilling down into data relating to margin influencers such as:

Revenue

  • Price
  • Volume
  • Discount
  • Incentives & Rebates

Costs

  • Materials or Components
  • Packaging
  • Energy
  • Transportation

Operations

  • Production Schedule
  • Product Recipes
  • Asset Utilization
  • Payment Terms

 Recognize the Outliers and Make Informed Decisions

pVelocity gathers and analyzes information and gives you immediate access to the way and the extent these operational influencers affect products, customers, assets and materials, giving you the ability to quickly and easily identify those products or markets whose margins are outside a standard deviation. With the outliers identified, all operational roles make margin improvement decisions with confidence:

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