customer profitability improvement

Hans-Gerlach WoudboerSeptember 2009

We Improve Profitability

Customer Profitability Analysis and Improvement by building a multi-dimensional

enterprise model

RapidBusinessModeling Hans-Gerlach Woudboer +49 160 530 1809

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Hans-Gerlach Woudboer

Passionate about Customer-Profitability- Improvement by using our state of the art RapidBusinessModeling tool

In a consulting for 10 years - dedicated to customer profitability improvement based on ABC/ABM

27 year with ExxonMobil in various technical and managerial positions within manufacturing, business and marketing

ExxonChemical President award winner for an enterprise re-engineering and cost reduction project of 30%

Chemical Engineer, earned his Master degree at the Aachen University of Technology


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Do You Know Your Customers True Profitability?

Does your company have any unprofitable customers? How much money do you leave on the table with your

customers? What profit does each of your customer add or destroy to

your companies profit? How much profit do you make or lose with activities

performed for your customers?

We can help you to answer all of those questions


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Enterprise Performance Overview

Dependency on customer and profit loss at a glance Dynamic Whale Curve with all details at your fingertip

P&L and profit Pareto by customer


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WhaleCurve can show Customer, Products, Channel , Activity, or any other desired

Dimensional Profitability

The example of a customer WhaleCurve is shown

The X. axis shows the customer , the left y-axis shows your sales volume reflecting the bars, the right Y. axis shows the cumulative customer profitability reflecting the green and blue red line.

The green blue cut point depicts where 80% of the total profitability was made on how many customers ( very often 20% of the customer make 80% of your profit)

The blue regime shows those customers make you 80% to 100% profit

The red regime shows which customers destroy your profit.


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Whale Curve


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Loss of Profit

Dep

ende

nce

on C

usto

mer

Dependence on Customerversus Loss of Profit


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Potentializer

Potentializer perspective by customer and product Gap-analysis of prices and costs. The basis of holistic and significant profit improvement!


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Performance Management Suite

Enterprise Intelligent solution for your business Tailor-made & dedicated to

your needs The result of your multi-

dimensional enterprise model

Dynamic performance details


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Performance Management Suite


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Profitability Improvement Process

Build model and measure performance of period1

Potentializer opportunities are simulated Use GSO* for optimal process

changes while maximizing profits subject to given constraints

Results are added to enterprise model used for future scenario

New model for new period and optimized conditions shows performance gains Less profit erosion Reduced dependencies on

customers*GSO=Global Search Nonlinear Optimization Technology


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Our Approach and Performance

Build a multi-dimensional enterprise business model for your company

Performance measurement by a WhaleCurve and Potentializer shows where you stand and what are your chances for improvement

Performance Management Suite shows all business model details

Low hanging fruits are revealed and can be captured Potentializer identifies best routes for changes Global Search Nonlinear Optimization Technology applied to

identified opportunities provides best answers for change Conservatively improve your bottom-line by 3- 6% of revenue


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One-day workshop and focused Customer Profitability Analysis One-day workshop:

We can develop from scratch at your site a substantial model of your business in order to demonstrate the capabilities and your potential advantages

All data based on management interviews

A detailed RapidBusinessModel can be built at an competitive price within weeks Presented to Management with proposed action for change Performance Management Suite enables access to all

results Precondition:

Access to data and model owner as coordinator


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Resources and Data

Commitment and Ownership of Management Management Steering Committee to report to A Model Owner and Coordinator Data

Accounting Costs and Income Statement/General Ledger Organizational and Process Charts Personnel File Transactional Business Data for Activity Driver Creation Customer, Products, Volume, Net Revenue, Markets.. For Mfg: Production Details

Line, Product1-n, Volume, produced from to Raw materials and product recipe


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References

Technische Glaswerke Ilmenau

Evonik-Degussa

Calpam a Kuwait Petroleum Company

A Medical Care Company

customer profitability improvement

Business

customer whalecurve

profit erosion

profit pareto

companies profit

customers true profitability

model owner

significant profit improvement

substantial model