To improve profits, you must build and coach a team across multiple facets of your company. You need players from all parts of the company: engineering, operations, sales, marketing, and finance. Only together can you commit and engage to improve the customer experience, products, and processes that go into making
Most companies think they know how much profit certain products bring to the table. But their real costs might be deceiving. The complexity of activity-based costing True product profitability is elusive. Individual products that we think are highly profitable sometimes aren’t. If you spread indirect costs evenly across the entire
Every company has customers who are inconsistent in their buying habits. Either they buy too infrequently or they buy products that do little to move the profit needle. This wreaks havoc with inventory and revenue streams. Often, companies choose to tolerate or ignore these customers. But what if these customers
As companies become more successful, they tend to grow their business by adding parts and vendors. However, every new part or new vendor adds more complexity to the manufacturing process — which in turn adds more costs. Complexity can come in many forms: • Duplicate or conflicting parts • Excessive
Companies constantly update their products to stay ahead of the competition and maintain customer loyalty. But beyond the obvious costs that go into modifying your products — such as manufacturing and shipping — do you know what might impact your final profit margins? Before you commit to new product designs,