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Software that shows you detailed costs and net profits per
customer, product line, vendor, service, process and activity.
How do Prismata's customers get the value out of their ABC analysis?
Streamline Internally
The CPS gives you detailed P&Ls for each customer, product and internal
process, allowing to compare relative efficiency among operations. If you
could have your electricity bill broken out by machine, or generate a P&L
per sales person, would you? Of course. Why?
Visibility. Visibility into financial details makes
internal streamlining decisions straightforward.
Cut costs where expenses are out of line ||
Educate your employees on their actual cost per hour || Create a shared
services costing model to allocate your internal expenses accurately
Identify Profitable Orders As They Are Coming In
The CPS gives you valuable information about the most critical point of the
company / client relationship: the order. Using its cost and profit
analysis, the CPS shows you break even order sizes, minimum acceptable order
sizes, and provides you with techniques to increase the profitability of orders
as they are being placed.
Educate your sales force to evaluate the
profitability of an order as it is being placed
Rehabilitate Unprofitable Customers
Without oversimplifying things, there are only 3 reasons a customer is
unprofitable: (1) they are buying your unprofitable roducts, (2) they are
buying very small quantities that are below your minimum feasible order size,
or (3) they are making you do something above and beyond the norm.
Regardless of the reason, the CPS gives you exactly the detail you need to
focus your efforts where they will do the most good.
Talk with your customers. Why are they
not buying your profitable items? || Is there any way you can change your
service to them to create a win - win?
Change Prices
The CPS gives you an exact cost per part or service, enabling you to modify your
prices to reflect the cost where possible. It also shows you which of
your slow moving, add on type products are unprofitable. Making small
modifications to the price on those items will add dollars to your bottom line
without risking alienating your customers.
Put Your Dollars Where You Will Get The Most Return
The CPS shows you costs and profits at every possible level. Use this
knowledge to guarantee that you are growing your strong customer and product
types, and not devoting time and resources to the life support of unprofitable
areas of your business.
Don't drop your unprofitable customers - but
make sure that you are giving the best service to your profitable ones
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"Prismata opened my eyes to P&L at a
level of detail I've never seen before, and allowed me to view resource
allocation under a microscope. For customer and vendor contracting it's
invaluable. It's where the rubber meets the road in organizational
management."
Brendan W., Executive Director, The
TENT Group || Customer since 2004
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"Prismata
adds value to organizations <by> illustrating costs compared to
revenues and detailing the driving forces behind
the organizations expenses allowing for increased revenues through better
understanding by the product / customer and their managers. Prismata
offers tools to support strategic planning efforts.
Ken K., President HAI, Customer since 2003
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