Product Line Profitability
Key questions need to be considered to determine the financial profitability of products and product lines and create a profitable plan. What is the true profitability of the client's products and brands and different distribution channels?

Which stock keeping units, customers, channels and brands drive or destroy profitability? What opportunities exist to improve profitability, either by cost reduction or margin improvement, and what actions should be implemented to realise these opportunities?

Xgen's approach is to develop a detailed cost-to-serve model by product by channel. We develop and validate methodology for allocation of overheads and fixed costs, identify strategies for profit improvement and put together a high-level business case and implementation recommendation.