To improve profitability, you need to first understand what drives it and then take action.

An analysis performed within a Capacent Profitability Review project is based on understanding not only profitability in terms of the customer segment, product or other relevant dimensions, but also the underlying profitability drivers. This requires an analysis that goes beyond a traditional ABC analysis, and often with a broader perspective, to consider also effects related to tied-up capital or other more indirect positive or negative contributions of a certain product or customer.

Based on this analysis, we help clients identify strategic and operational actions to improve profitability, ranging from product range changes and pricing to operational changes in administration, logistics, and production. In project-based business, the understanding of key drivers may also support decisions about which projects to invest in, to drive the overall profitability of the company.