Inspiring 10th CPM-BP Round Table with Profitability Management as central theme

On Thursday 17-Sep-09 EyeOn hosted an inspiring Round Table meeting where practitioners in the field of Performance Management discussed about Profitability Management.

Many companies seek for opportunities to improve profitability. You must be able to identify the most valuable customers and products, while understanding the impact that changes in pricing and process improvements have on costs and profitability.

The participants of the Round Table elaborated on current practices of measuring and managing product, customer, and channel profitability:

- How do companies identify the true drivers that impact costs and profitability cost and profitability e.g. by line of business, customer, product, supplier, channel, account, route, sales order line, transaction, cost-to-serve?

- To what extend are activity-based costing (ABC) methodologies applied to gain better insight into the cost of business activities?

- How do companies align decision making in regard to the ‘right’ product, ‘right’ price, ‘right’ customer and the ‘right’ sales channel across the various functional areas involved?

- Which information systems and ICT tools are companies using as per today?

Furthermore Royal Philips Electronics presented how the Sector Consumer Lifestyle is steering its business towards profibitable growth.