The Profitably
Audit was developed by Atenga to discover exactly
where your profits come from. It uses regression analysis
to identify your most profitable customers, products,
sales people, channel partners etc., based on such
variables as order volume, discount rates, territory,
customer contact level business unit, product, product
line, and even specific products and bundles purchased.
It considers a wide variety of variables that are
relevant for your business. Most companies know where
their revenues come from, but few have a complete
understanding of their sources of profits.
Once the analysis is complete, we work with you to
put a plan in place to make decisions and take actions
to “fix or fire” underperforming portions
of your business.
The Profitability Audit also includes an assessment
of your internal processes to eliminate profit leaks.
Many companies undertake projects similar to portions
of the Profitably Audit on their own, but few with
the scope and to the degree of detail and specificity
that Atenga will deliver.
The profit process consists of building dispersion
diagrams showing distribution of the various variables
(revenues, profits, discounts) across the spectrum.
This will show the most and least profitable products,
product lines, business units, sales territories,
etc. It will support and even drive immediate action
to strengthen performance, and lay the basis for actions
long into the future.
Atenga implements the Profitability Audit, to the
extent possible, so that the process becomes internalized,
continual, and self-reinforcing. We deliver it along
with tools and a process we call Profit Process. We
educate the company’s staff on their use, and
create success stories to build the credibility of
the pricing initiative. The Profit Process, executed
by your staff, provides a foundation for ongoing profitability
improvements.
If we find that the data is not sufficiently comprehensive
we will instead specify formats so the data can be
collected going forward and the Profitability Audit
can be completed as a body of data accumulates.
Below are some examples of this type of analysis:
