Profitability Optimization

Cost-to-Serve Transparency

In this field of global competition, you are trying to safeguard our profitability by innovation and differentiation. This has increased complexity of your business. But as prices keep eroding or costs keep creeping up and the bottom line is under pressure, questions rise:

• Same product at same price: equally profitable customers?
• Does the price we invoice justify the service that we offer?
• Can we imagine profitability by altering the way we package, sell, deliver a customer?
• Does the same volume justify the discounts, rebates or promotion structure we provide the customer?

Our cost-to-serve analysis is an activity based costing approach that allows you to reveal the true cost of complexity and cost to serve the customer. One could state that our cost-to-serve is the pragmatic version of traditional Activity Based Costing with the objective to reveal what is worth to reveal, and what can be influenced.
The Equazion tool and methodology we use for this exercise, enables us to model the cost to serve and to reveal the true profitability. It incorporates both traditional and time-driven Activity Based Costing concepts. It allows us to perform unlimited what-if scenarios to identify the opportunities for improvement.

Sustained Profitability Optimization

Our cost-to-serve audit will reveal the true cost to serve your customer and the true cost of the complexity of your offering. This is the basis of our joint improvement identification and elaboration.Unlike traditional management consultants, S&V will transfer its entire knowledge and methodology to your team. Upon request of the customer, we can implement the Equazion tool and embed methodology into your processes and organization. Most importantly, it allows you to move from the typical “one-off exercise” to an embedded process for continuous improvement.

Check our Profitability Optimization client portfolio and testimonials.