Slow Moving Products due to High Cost of Goods Sold
We analyzed transactions from January 2013 through October 2013 for your slow moving products and found an opportunity to improve your profit margin by $454k annually. Currently, your net sales for this segment are $2.4m with a margin of $890k. This opportunity will give you an additional 51% margin.
Root Cause Analysis
Delta Percentage from Floor — Cost of Goods and Pocket Margin
- Opportunity
- $313k
- Customer
- ACME Inc.
-
29%
Above Margin Floor -
31%
Above Cost of Goods Floor
- Product
- 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL
- Customer
- ACME Inc.
- Geography
- KR
- Date
- October 1, 2012
- Net Sales
- $411k
- Opportunity
- $313k
Legend
| Margin | Cost of Goods Sold | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Products | Net Sales | Floor | Actual | Delta | Floor | Actual | Delta | Opportunity | ||||||||
| 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | $1.4m |
|
|
$313k |
||||||||||||
| 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | $1.4m |
|
|
$313k |
||||||||||||
| 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | $1.4m |
|
|
$63k | ||||||||||||
| Customers | Net Sales | Opportunity | ||
|---|---|---|---|---|
| ACME Co. | $12.4m | $313k | ||
| Vendavo Inc. | $1.4m | $43k | ||
View Products, Customers or Transactions Tab to see table examples.
View Products, Customers or Transactions Tab to see table examples.
View Products, Customers or Transactions Tab to see table examples.
The values for the individual transactions displayed below are not annualized, unlike the values displayed for the contributors.
| Date | ID | Product | Customer | Geography | Revenue | *Net Sales | *Opportunity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $411k | $500k | $313k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/10/12 | 37482 | 12130452-XP,TR_,15,CH_,SR,HPR,015,60,0100,AL | Apple | KR | $396k | $500k | $287k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $276k | $500k | $265k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $209k | $500k | $212k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $178k | $160k | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $156k | $500k | $157k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $144k | $500k | $121k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $131k | $500k | $87k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $11k | $500k | $65k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10/01/12 | 81910 | 10330594-CP,WF,ATR_,15,CH_,SR,HPR,015,60,0100,AL | ACME Inc. | KR | $5k | $500k | $25k | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vendavo Profit Advisor is the Easiest Way to Discover Additional Profit
Vendavo Profit Advisor is the easiest way to discover additional profit. Using predictive analytics, this intuitive SaaS application enables you to:
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Identify margin leakage
By automatically analyzing millions of transaction records in real time, Profit Advisor detects margin leakage across your business.
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Evaluate profit opportunities
Quickly see all of your profit opportunities in one place and determine the true value to the business.
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Explore your data
Drill into your data by products, customers, geographies and sales professionals to understand root cause.
Understand an Opportunity at a Glance
An easy way to view a summary of a profit opportunity, including the analysis used, segment and root cause.
Root Cause The reason for the margin leakage identified by the analysis
Recommended Solutions A guide with possible ways to address the root cause
Opportunity Segment The part of your business in which the leak was found
Analysis Used Explanation of the specific analysis that found the opportunity
Visualize the Opportunity
Charts visually characterize and describe an opportunity by comparing poor performing transactions with those that had good profit margins.
Good Versus Bad Compare poor performing transactions versus those that performed well
Root Cause Identification Understand how the root cause was identified and if there are other improvement possibilities
See the Trend Visualize the trend for the segment over time to understand if the problem is getting better or worse
Focus on the Underlying Details
Review and focus on the contributing business dimensions and transactions within the identified opportunity segment.
Focus on the Product Focus on a specific product to analyze its potential opportunity
Contributors Detailed list of the products, customers, and other contributors involved in the opportunity
Contributor Uplift How each contributor impacts the overall value of the opportunity