Measure the True Profitability of Products and Customers
Create a complete and actionable view of the activities your company performs for each product and customer – both above and below the Gross Margin line. Arm yourself with insight. Identify and retain the most profitable customers and products, and develop pricing and service strategies to improve profitability on the rest.
Strategically Set Prices
Set pricing strategies, premiums and discounts based on a complete and accurate knowledge of your true costs. Price to cover the costs of special requirements, non–standard billing, exception handling, and manual processing.
Measure and Reward on Profitability, not Revenue
By measuring the true bottom line of each division or business unit you will be able compensate your executives and sales team based on profit, not just revenue.
Reduce Operating Costs in a targeted and sustainable manner
Are you blindly cutting costs? Cut them surgically by identifying and targeting wasteful activities, such as rework, unnecessary changes, error handling and exception processing. Quantify the expected savings from improvement initiatives to support business cases, and measure improvements achieved over time.
Set your organization’s capacity appropriately
Measure and optimize capacity utilization. This includes both staff and equipment capacity. With rapidABC you will be able to manage and plan the levels of capacity used and needed in your organization for the volume of work performed or anticipated. Calculate costs either on a “full-absorption” basis, or automatically exclude the cost of unused capacity.
Create Transparency and Action – move beyond allocations
Reduce the cost of shared groups in your company. Transform your back office activities from cost centers to business partners. Measure and charge for services as consumed by front office business units instead of arbitrary allocations. Empower business units to make decisions about the services they need, and compare costs to external benchmarks.