PMSI

100 Day Profit Improvement Program

PMSI is conducting a 100 day profit improvement program using a ‘full’ business transparency model.

The client is looking to identify both short and medium term profit improvements following a recent acquisition of a new business unit. The first 100 days are seen as key in defining a proactive plan going forwards.

PMSI is looking to into the profit pareto principle (20:80 rule) not simply at a customer or product level, but at an invoice/product/customer level – to generate full transparency as to where and how profit is made. The work requires extracting order level sales from SAP and allocating costs using a practical approach to activity based costing. PMSI will analyse the ‘cost to serve’ relationships and evaluate the opportunity to change commercial terms – pricing, discounts, promotions and payment terms.

A detailed and ‘fact’ based performance improvement plan, will allow the client to use data complexity to its advantage and define very specific action steps that deliver profit improvements.