Cutting Losses By Completing A Puzzle
Client
International computer systems manufacturer & solutions provider
Challenge
Our client’s sales team was underbidding special projects due to the lack of complete information about components used in manufacturing their product. Contracts were not profitable full-term because various deliveries of multiple components were required, yet not accounted for in pricing.
Risk
The client was experiencing massive losses among multi-million-dollar projects, significantly reducing corporate profit margins while impeding business expansion opportunities and job growth.
APC Solution & Results
APC put in place an on-site business analytics team to assess the situation. Finding that there was a lack of connectivity between systems and departments, they worked to establish transparent and complete cost projections on individual components that make up any special bid. Combining component cost data, projected cost data, manufacturing costs, shipping costs, tariffs, and SG&A, our team was able to produce the total solution cost and profit to ensure bids were accurate and profitable for the organization.
The client’s management team now makes bid approval decisions based upon complete data, resulting in significant profit gains. They’ve implemented this solution across all geographies.
