ENTERPRISE PERFORMANCE MANAGEMENT SYSTEMS
Prophix for Profitability Analysis
Improve sales and operational decision making
How would eliminating a customer or a product impact your profitability? How much will it cost if you increase production by x%? These are important questions to answer, but most organisations hold too much data, in various formats, to perform accurate profitability analysis.
Prophix’s Profitability Analysis software enables companies to feed their operational plans by evaluating key profitability measures such as Profit Margins, Gross Profit, Operating Profit, Pre-tax Profit, Net Profit, and Profit and Loss statements. Managing the calculations and allocations, using past performance as a touchstone, and accurately reporting and sharing the evaluation of profitability - what could be more important? After all, maximising profitability is the primary goal of all businesses.
Prophix’s Enterprise Performance Management software brings relevant information to the forefront, clarifying both current and past profitability, allowing you to accurately project and analyse profitability for the period ahead.
Those who use Prophix’s Profitability Analysis software enjoy the following:
- Increased accountability and insight into the company’s information, with the ability to answer such questions as… a) How can we effectively reduce costs and optimise performance? b) Which Products, Services, Channels, or Customers should we maintain, adjust, or discontinue? c) How are direct and indirect costs assigned to Products, Customers, Services, and Distribution channels? Which should we investigate and redesign? d) Do we have capacity to increase the production of a specific item (or sale of a service)? If so, how much will it cost? e) What is the impact of idle capacity on the total cost of a product or service? If we reduce idle capacity by 5%, how much will our profitability increase? f) Why are we reporting losses for a specific customer? Does this relate to the products that the customer buys, the negotiated terms, or the unique demands of serving this customer?
- Report positive results using visual scorecards and dashboards
- Quickly deliver precise information regarding profitability in order to influence decision making
- Evaluate ways to change the business to improve profitability; analyse potential adjustments with a pro forma income statement