Improving Profitability and Reducing Cost in Retailers Using Activity Based Costing

A true product profitability solution enables retailers to model and control cost, and hence maximize their profit potential.

This white paper examines the impact that net activity based costing (ABC) analysis can have on a retailer’s ability to manage costs, pricing, and net profitability. It discusses the key costs retailers can influence, the choice between supply chains and distribution channels, ABC analysis pitfalls, best practices, and the huge benefits you can gain from net margin analysis. Finally, it touches on the solutions available from Business Objects, an SAP company, to address the net profitability issue.

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