Identification of the profitability of products and distribution channels
Client
Bisaku - Established jewellery business with own productionBisaku is a family-owned jewellery company specializing in wedding and engagement rings, with an emphasis on craftsmanship in its own jewellery workshop. They have covered major cities in the Czech Republic with a reach to Slovakia and now Austria. Their production includes both classic craftsmanship and modern advanced technologies. Together we unravelled the business part - the profitability of sales channels and product groups, and then we looked at the real cost of production and identified bottlenecks in production. This helped us to make decisions on how to focus the product portfolio, set the right prices and realign production processes.
Baseline
- Inadequate business reporting based on order data only.
- Lack of production costing, only rough estimates of cost of sales.
- Lack of linkages in profitability reporting.
- Virtually no planning based on defined KPIs.
Our solution
- Untangling business processes and their impact on profitability.
- Review and appropriate allocation of sales and marketing costs.
- Detailed analysis of purchasing and manufacturing processes with direct quantification in product costing.
- Unification of data into a consistent reporting ecosystem enabling a standardized view of data encompassing the complete profitability of products and sales channels.
- Creation of planning tools that are directly based on scalable business impacting parameters with the ability to create flexible plans to evaluate alternative scenarios.
Summary
- Appropriate linking and leveraging of available business data
- Process mapping from production to customer
- Design of reporting ecosystem
- Modelling of adequate tools for strategic decision making
- Project ~120 hours
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