The Profit Impact Model
An out–of–the–box solution from Focus and CoreProcess
A Unique cost-to-serve Model
Focus offers a unique cost-to-serve model, CoreProcess PIM, to enable you to get the answers you need in the timeframe you need them. The CoreProcess Profit Impact Model is a decision support tool designed by Focus Principal, Garry O’Sullivan, to answer the critical questions facing suppliers and so enable profitable engagement with customers.
For the most up-to-date information on how CoreProcess PIM can help you optimise your cost-to-serve (or even your carbon footprint), visit the CoreProcess PIM website.
The Profit Impact Model is built on a modelling tool from supply chain solutions company CoreProcess. Working together, Focus and CoreProcess have developed a model which is ready to use on current issues, such as Primary Freight, Factory Gate Pricing, DSD to DC conversion and NDC/RDC changes. PIM is readily extensible to other cost to serve issues, such as Shelf Ready and VP configuration. CoreProcess PIM can be applied to virtually any cost path analysis problem including factory activities, warehouse activities and administrative processes.
The Profit Impact Model will enable you to answer questions, such as
- Factory Gate Pricing
- What was the average transport cost per case, of each SKU shipped to CML, over the last 12 months, aggregated across all ship–to locations?
- Primary Freight Charge
- What was the average transport cost, per pallet and per tonne, by ship–to location, shipped to Woolworths, over the last 12 months, aggregated across all SKUs?
- NDC/RDC changes
- What will be the change in transport cost per case, by SKU, for SKUs which will be delivered to CML’s National DCs in Sydney and Melbourne?
- Net Product profitability
- What is the average percentage profit contribution, by SKU, across all Foodservice customers, once distribution costs are deducted from net sales revenue, based on the last 6 months’ sales?
- Shelf–Ready Packaging
- What would be the per–SKU cost impact of shipping SKU–XXX to Woolworths in shelf–ready packs of 8 retail items, compared with the current cost per SKU, for non—shelf–ready packs of 12 retail items, while maintaining the non—shelf–ready packaging for remaining customers?
- Optimal Pallet Configuration
- What would be the cost impact of reducing the pallet configuration of SKU–YYY, from five layers to four layers?
- Smaller Orders
- What is the difference in average order picking cost, between full pallet picks and case picks, measured at the cost–per–case level, by SKU, based on the last 12 months’ picking records?
CoreProcess PIM is a robust Cost–to–Serve modelling tool, using industry standard components — Java and MS SQL. Business managers can use the Excel reporting included with the model or can use their own query tools to interrogate the Model. The Model is scalable and highly reconfigurable to meet a wide range of cost path modelling needs. The Model is preconfigured for Factory Gate/Primary Freight, NDC/RDC and DSD to DC analysis.
Let us show you how the combination of Focus expertise and the Profit Impact Model can quickly position you for fact–based engagement with your major customers.