Profitability Management — What Are Your Decisions Costing You?
With a high degree of demand and supply volatility, each decision can make or break the bottom line
Profitability management is arguably one of the most important functions for management at all levels of any enterprise. Yet it is often poorly supported with business intelligence tools that not only look backward instead of forward, but are without a direct link to the everyday supply and demand pressures on the business. Profitability management is not just a problem for Finance.
To manage profit in real time, enterprises need a solution in which multiple functions can model costs across multiple dimensions. Decision makers need to understand the financial implications of supply and demand changes when they happen. And most important, they must be able to clearly understand how their decision will impact profitability before they take action.
A control tower solution using RapidResponse® integrates profitability management as a real-time function of the business.
By linking cost of goods sold (COGS) information to "what-if" scenario analysis capabilities, managers across the enterprise can:
- Immediately calculate the financial impact of plan variances,
- Predict profitability based on the various options for course correction
By incorporating profitability management as part of their RapidResponse control tower solution, customers can expect to achieve
- Quicker, fact-based decision making
- More profitable (or least costly) decisions
- A means and motivation for all managers across the enterprise to make profitability a cornerstone of any operational decision
A control tower solution with RapidResponse eliminates the divide between siloed functions with a single application platform that truly delivers on the promise of integrating information, capabilities and people for holistic coordination of an enterprise's operations.
Learn more about the technology behind RapidResponse.