Cost and Profitability Optimization
Model business processes to determine cost and profitability drivers
" A very pleasant surprise has been the true breadth and real multidimensionality of the resulting information. The financial intelligence we have gained is really extensive and we can process it according to customers, countries, products and in any way we want."
— Aki Moilanen
Project Manager, Stora Enso
How SAS® Can Help
SAS cost and profitability solutions can provide insights into the causes of cost and profitability problems. This enables decision makers to investigate problems and develop corrective actions that will reduce costs, streamline processes and help formulate marketing programs to acquire, retain and grow the more profitable types of customers. With SAS, you can:
- Understand the underlying profitability of each product, channel, customer or customer segment by understanding the true costs and cost drivers that affect profitability, rather than simply relying on volume, revenue, direct costs and price metrics.
- Actively manage profitability as a performance metric, setting budgets and targets based directly on profitability that is measured down to the individual product, customer and channel levels.
- Create effective customer and product marketing strategies by optimizing customer segments and developing models to determine the right channel and market to advance the profitability of each customer.
- Improve processes to reduce costs and increase quality by accurately modeling your costs at the activity or process level with analysis showing the details of resources consumed and the cumulative effect of each activity.
- Acquire and share tactical intelligence for sales, marketing and operational decision making with flexible reporting capabilities that let you distribute information throughout the organization to those who need it in a format that works best for each person.
How SAS® Is Different
With SAS you get solutions that allow you to actively manage profit directly as a performance metric. You can set budgets and targets based on profitability - not just on sales levels - and you can measure not just at the enterprise level, but down through divisions and departments to the product, customer and channel levels. Only SAS delivers:
- Multiple costing and management methods that open up the market to those not using a specific methodology and allow flexibility to model in the way your business is designed.
- Scalability up to 100 million customers and 1 billion transactions enables the calculation of profitability at a detailed level for large volumes of cost drivers and transactions not previously possible.
- The opportunity to increase reporting frequency by reducing the cycle time of calculations and reporting processes. This provides for regular and more frequent management reporting and analysis of profitability.
- Transaction-level cost calculations provide a natural way to model cost at the most detailed level. In addition, calculating costs at the individual transaction level provides the most accurate representation of profitability.
- A shared technology platform that provides huge value with common metadata, integrated reporting, system security, advanced analytics and cross-platform data integration. Support for multiple and mixed platforms enables IT to gain maximum use from limited resources.
Related Products and Solutions
SAS® Activity-Based Management
SAS Activity-Based Management is an analytic application that models business processes to determine cost, profitability and drivers. With this solution, organizations can make informed decisions that streamline processes, deliver revenue growth and reduce costs across the organization. By providing process, cost and profitability insights, SAS Activity-Based Management reveals how unprofitable customers may be destroying up to 400 percent of your net profit – and helps you understand how to prevent this.
SAS® Profitability Management
SAS Profitability Management provides accurate cost and profit calculations based on the rule-driven allocation of expenses and revenue down to the individual transaction. By providing insight into profitability factors, the solution helps decision makers focus on opportunities for profitability improvement – such as preventing unprofitable customers from destroying up to 400 percent of your net income.
Ready to learn more?
Call us at 1-800-727-0025 (US and Canada) or request more information.