ProfitFinder® - the economic GPS - gives a total economic control of work processes.
The system acts as an economic GPS and provides a complete analysis of a company's profit. It distributes all costs so that Net Profit for the products (services), customers and resources can be analyzed. Profit is structured in the form of profit chains to indicate how profit is generated in the process from orders in to delivered to customers. The Profit Chains follows in that way business processes so that production (products) and market (customers) are connected and that other support services (departments) costs are integrated in these processes.
That allow follow ups from the bottom up and vice versa, and shows how profit is made in a company. The ProfitFinder does the analys on three levels - for the whole company adding together all the profit chain to one total profit chain. On next level are resources connected so that production resources are connected with the marketing resources. And on the lowest level are products that are produced in a given production resource linked together in the profit chain, with customers being handled by a given market resource.
This enables the management to delegate partgoals in the profit chains in relation to staff responsible for monitoring and control the company's profits.
The sum of all customers profit measured as net margin when all costs are distributed, is equal to the total profit of a company. That means all cost relating to resources, products and customers can be evaluated and corrected directly to their specific profit contribution. Companies often check on product profitability, ProfitFinder supplements with a consistently implemented customer-benefit analysis that not only analyze products and customer but by its profit chains profit contributions can be followed in all activities including the level of resources - from floor to management level.
Management can thus delegate various sub targets to personal along the business processes which they can monitor and controlled via ProfitFinder´s profit chains.
Managers along the Business Process control and manage profit collaboratively supported by ProfitFinder.
ProfitFinder delivers the following informations:
Profit chains based on the profit per customer - when all costs are broken down on customers, products and resources - to Net Margin. The choice of the distribution level is made so that the total customer profit is equal to the company's Profit from the accounts ERP-system.
Profit per customer in the form of profit chains that connect the team from order into the orders out (lower level) and the resource profits from market to purchase / production of the next level. The system works equally well for service companies.
Profit chains also means that product profitability in addition to gross margin even shows net margin after all costs of production. Product profits, even with a mix of products to specific customer or market, appear before the marketing costs of products in stock, plus sales.
Then one knows how much sales costs can be exploited to achieve a predetermined net profit for a customer.
Automatic ranking of profit chains of winners / losers - for customers, customer groups, products, product groups in terms of customer gains in different parts of the profit chain from purchasing / production to warehouse to the customer.
Period Comparison of the total profit chains of any periods of information as above.
A customer and product index which links the present situation with profits expected future profits through the coupling to Balanced Scorecard that is integrated into ProfitFinder. (Not Included in the ProfitFinder Basic)
Unique variables measured are quartile membership ranking in terms of customer: Sales, surplus (customer profit) before the fixed customer costs, customer profit (as net quartile membership). KPI:s like sales, surplus (customer profit) before the fixed customer costs, customer profit (as net margin) and net margin is set to use the marketing costs and finally, a price correction. The latter indicates how much above or below a customer purchased their products / services in terms of absolute value. It allows one to see how much the company received more, or had to give away to a customer, in relation to the average price paid in the period analyzed. The same analysis on the resource level.
Benchmarking of all the "customer benefits" for both the customer - the product level and at customer-product level (resource level). (Not in ProfitFinder Basic)
Profit simulation with focus on how the company can operate more optimal with respect to the current customers.
Balanced Scorecard (Kaplan & Norton) graphically integrated with the database. (Not in Basic) (Graphics are available for all functions).
The system can run in real-time or by batches. In the first case, it means that whenever there are new input data in existing systems ProfitFinder has an automatic input program that updates its database.
There are also opportunities to bypass the a customers existing system and report an additional control parallel. When companies move production to low wage countries, there is a need for control to check what the ERP system says. And there are opportunities to create such a monitoring function. As a general rule it is possible that with our technology and in cooperation with the customer to create unique customer-specific solutions based on Profit Finder’s platform. It is feasible when the system has a completely open structure.