COST PROFIT SYSTEM
Provides great decision-making power
The Cost Profit System provides the CEO and management with a basis for determining “where your company’s hidden potential lies“.
No more hesitant management decision-making with the help of fact-based information giving a holistic view, as well as the profitability of each individual customer and products.
No more frustrating disagreements between different sectors, including product development and the market, finance and sales, and between individuals.
Quick overviews combined with easily accessible data enables management to work focused and goal-oriented.
Clear decisions make it easy for management to communicate, motivate, create trust, and establish respect in the organization.
Discussions about prices, assortment, e-commerce, and such, becomes factual and constructive. The basis for investment, for example, to relocate – or bring home – manufacturing from low-cost countries is now clearer.
The Cost Profit System is a cloud-based software that has been praised by all of our customers for its simplicity and pedagogical approach that provides amazing decision-making power and helps management to achieve incredible results!
WORK PROCESS
Positive patterns of success
We start from the holistic view to look at the final result of one or more processes. Then we focus on finding positive patterns of success. We avoid focusing on problems are often already in a troubled business.
We divide larger assignments into one or more smaller tasks. Each task should already be yielding results before the next task begins. The combination of several steps creates a positive, long-term and sustainable result.
We are known for:
contributing to a significant increase in profitability
keeping deadlines
making complex things simple
being driven and competent
References
Industrial company B2B
Turnover: 1 billion EUR
The slaughter of sacred cows…
It was shocking when only 3 out of 100 clients were profitable in a division of the company after ABC-Konsulterna did the first profitability analysis.
Continued evaluation helped management to gradually break the downward spiral of losses and decisions made only on gut-feelings.
Within 1.5 years, earnings improved by more than SEK 70 million and the division went from large losses to making healthy and sustained profits.
The improvement was achieved after an extensive slaughter of sacred cows……….for example, the belief that good gross profit would be the same as good profitability.
Since then, the company has enjoyed stable profitability regardless of the economic cycle. An “ABC Award” was presented to the most profitable market internationally.
Logistics company
Turnover: 150 million EUR
The secret weapon of success revealed!
CPS’ profitability analysis laid the foundation for an offensive action plan. Five areas were identified to put the company on the right track and led to significantly improved profitability and rapid expansion.
The key to success was management’s ability to set clear and fact-based targets, as well as giving the company unambiguous messages.
Product company, consumer goods
Turnover: 100 million EUR
We rarely need to hesitate!
“We rarely hesitated when taking action,” said the management after seeing the first ongoing CPS’ profitability analysis. Since 2002, ABC-Konsulterna’s profitability analysis have proven to be a phenomenal strategic decision-making tool.
The profitability charts have also been of great value for the board.
Company in the sports industry
Turnover: 40 million EUR
It has been incredibly valuable!
“I am extremely glad we started using CPS’ profitability analysis! It’s been something we could rely on, especially this year!” says the CEO.
We are all working towards the same goal now. We have restructured certain parts of the company and taken many actions that have led to a considerable increase in profits. The board and the owners are satisfied, even impressed.
Plastics company with qualified B2B products
Turnover: 20 million EUR
Basis for a variety of decisions!
“It was a brutal truth in many ways, but we finally had it in black and white. Already in the first year, we managed to improve our revenue and reduce costs by SEK 5-7 million“!
The company changed when ABC-Konsulterna came. After the first round, we got the answers and it was definitely an ‘aha’ moment! Now we could easily see which items were profitable or worthless and why!
“Suddenly, we had the basis for making a variety of decisions, both internally and externally!”
“You can almost talk about time before and after ABC-Konsulterna joined our company. Working on the Profitability Analysis is one of the most enjoyable things I’ve done in my career. Sure, it was a lot of work, but when you look at the results, it´s worth it“, concludes the CEO.
The overall impact has been a multi-million Swedish Crowns improvement. A bonus effect is that staff have become even more aware and engaged.