Customer and product profitability identification and forecasting
Client
Allgene - distribution of laboratory equipment and materialsAllgene is a distributor of laboratory equipment and reagents for molecular and cell biology and in-vitro diagnostics in the Czech and Slovak markets. They experienced tremendous growth during the covid 19 epidemic, but after the epidemic subsided, they needed to diversify their product portfolio and find new sales channels. We worked together to get the reporting right, define customer and product hierarchies and create a flexible planning model.
Baseline
- Uncategorized business reporting based on order data only.
- Lack of linkage in profitability reporting.
- Lack of linkage of impacts to overall P&L and CF.
- Virtually no planning based on defined KPIs.
Our solution
- Untangling business processes and their impact on profitability.
- Categorization of customer and product groups.
- Detailed analysis of purchasing and sales processes by defined groups with impact on full P&L.
- Unification of data into a consistent reporting ecosystem enabling a standardized view of data encompassing the full profitability of products and sales channels.
- Creation of planning tools that are directly based on scalable parameters impacting the business with the ability to create flexible plans to evaluate alternative scenarios.
Summary
- Appropriate linking and use of available business data
- Design of reporting ecosystem
- Modelling of adequate tools for strategic decision making
- Project ~80 hours
Client words
"Covid-19 had a huge impact on the business - mostly negative, but positive for us. However, once the wave had passed, we needed to refocus and target the right customer groups with the right product portfolio. Martin helped us categorize customer and product groups and identify their true profitability. He reconfigured our reporting so that we could maintain our own profitability reporting. He integrated a simple and flexible planning model that helps us find answers to possible business scenarios. This helps us to target our sales and marketing activities."Standardization of reporting with project management integration
External financial management and appropriate interpretation of business data
Forecast parameterisation and standardisation
Customer and product profitability identification and forecasting
Developing an eCommerce business case simulator
Identifying the cost of the product and the correct pricing
Identification of the profitability of products and distribution channels
Martin Klen Business consulting
Introduction
Offering 20+ years experience in various business analysis and financial management roles from big multinational companies and and mid-size local companies as well. Strong focus on business partnering and on implementation, standardization and centralization of (not only) finance processes according to the business needs.
Key competences
- Business processes analysis
- KPI identification
- Forecasts and financial projections modelling
- Reporting tools design and recommendations
- Business data interpretation
- Decision making support