Revenue Enhancement
• Customer profitability
• Product profitability
• Value selling
• Price Optimization
• Sales force effectiveness
• Product innovation / introduction
|
Direct
/ Material Cost
• Finished cost markets /
suppliers
• Low cost markets / suppliers
• Manage purchase price variance
• Collaborative engineering
with customers
and suppliers |
Inventory
/ Carrying Cost
• Inventory and inventory
carrying costs
• Inventory policies and
procedures
• Sales and operations planning
• Demand and supply
variability
• Product lifecycle management |
Indirect Expenses
• Office supplies and equipment
• Professional services
• Hardware and software maintenance
• Packaging
• Industrial and safety supplies
• Marketing and advertising
|
Headcount
• SG&A (sales, finance, HR, IT...)
• Process (plan, make, source, deliver...)
• Variable cost (temporary labor)
• Employee benefits, healthcare
• Insource vs. outsource
|
Asset
Utilization
• Equipment: (Machines, tooling,
trucks, etc.)
• Facilities: (DC network, plants,
offices, etc.)
• Asset maintenance |
Freight
• Truckload
• Less than Truckload
• Small parcel
• International
|
Cash Flow
• AR (DSO)
• AP (DPO)
• Treasury management
• Banking relationships
• Invested capital
|
Tax Liability
• State and local
• International
• R&D tax credit
• Michigan state liability
• Unclaimed property |
