The Challenge: Incomplete Insight

The management of a company's costs and profitability can be an important competitive advantage — especially in markets where sales volume growth is low and differentiation is expensive or difficult. Unfortunately, most companies don’t have full and accurate insight into their costs and profitability, and fail to account for the cost-to-serve element of individual transactions.

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Better Margin Management with Cost-to-Serve - PDF 236KB
Learn about the impact that cost-to-serve analysis can have on an organization's ability to manage costs and profitability.

ABC Solutions That Make the Difference

Our activity-based costing (ABC) solutions can help you easily determine the cost-to-serve on a transaction-by-transaction basis, providing you with the insight required to control costs and optimize profitability.

How it Works

You start with how much your customer spends on the product or service and how much it costs to produce. Then you deduct the cost of each activity involved in serving that particular customer. The result: a powerful cost-focused, transactional database that illustrates true profitability. You’ll get the information you need for more effective pricing, tendering, key account negotiations, customer management, process improvements, and product management.

Complete Analysis

An ABC methodology for cost-to-serve analysis is designed to help you make sense of the complex relationships between customers, products, distribution channels, and the cost of shared services, like IT and marketing. It provides a complete picture from which you can improve your business performance management.

Customer Success Story

Morley Fund Management

After a review of the marketplace, Morley felt that BusinessObjects Activity Analysis was the only solution that could help it understand the cost and profitability of its clients and asset classes.

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