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The Decision Factor offers insightful comments and observations on analytics—from views on new technology approaches and market dynamics to the latest industry trends driving demand for faster, smarter information analysis. This blog contains personal views, thoughts, and opinions from SAP employees, mentors, and friends working in the area of analytics. It’s not endorsed by SAP nor does it constitute an official communication of SAP.

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Improve Your Organization’s Bottom Line with Profit and Cost Management Analytical Applications

I’ve implemented net-profit and cost-management analytical applications – that include realistic, indirect cost at customer and product levels –at a variety of companies. Without exception, each one rapidly and significantly improved the bottom line.

Most companies know revenue, discount, COGs, and some direct costs at the customer and product level, but to complete the net-profit picture, they also need realistic indirect costs, which includes acquiring, supplying, and cost-to-serve.

Improving Customer and Product Bottom Line

Most analysts and experts say that knowing the true net margin at the customer and product level …
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