Cost & Profit Guard
Cost & Profit Guard (CPG) is a software tool that calculates the cost of resource against time and activities and presents information about whether your customers, products and/or services are profitable at both the GROSS and NET PROFIT lines.
CPG analysis will help you discover more about your customers and how your company is performing.
How it works
CPG makes calculations based on extracting detailed information from your sales income and overhead costs including the associated operational and/or manufacturing costs. The information provided allows you to compare and decide which customers, products and services are profitable at any point in time or over a selected time scale.
To calculate profitability, CPG compares the difference between the contribution a customer makes to the business against the operational and/or capacity, time and activity costs. This information is summarised against a number of key headings. You can specify the headings you require, such as total sales, number and mix of profitable/unprofitable customers, products and/or services.
Displaying results
The results are displayed on your computer screen after the monthly invoices have been completed. The screen consists of a 12 window matrix. The position of customers and products depends on volume (size), their contribution and profitability.
See Figure 1 below:-
Figure 1. Cost & Profit Guard Results
The relevant information is shown in a simple to read and structured way that makes it easy to understand. This helps you and your colleagues to make the best decisions for your business.
Since the matrix is an active tool, users can drill their way down to the appropriate level of information available such as the cost and contribution of each individual product or production line. This also reveals detailed information about the mix of items that customers purchase along with their related costs and profitability.
Customising the analysis
The CPG system can also analyse transactions based on different criteria, such as totals per region(s) and/or division(s), department, production line, individual customer plus each article or group of items.
Benefits for your business
The analysis can also provide information about how customers buy, what sort of impact they have on selling prices, the cost allocation against the activity involved and how the entire sales, pricing, purchasing, operational and production system functions.
CPG assists you to have more accurate and detailed information about your customers. This allows you to develop your approach and response to and in the market place quicker and more efficiently than your competitors do.
For more information, please call Richard Jackson direct on +44 (0)1638 731850 or send an email to rjj@cambridgequadrant.co.uk