Does your business utilize cost-to-serve analysis to drive growth and improve your bottom line?

A building products manufacturer boosted their margin through implementing targeted pricing actions surfaced through cost-to-serve analysis.

The Challenge:

A building products manufacturer had a highly complex pricing waterfall and recently underwent a price adjustment but weren’t seeing pull through to margin. They were also struggling to isolate what was causing the lack of impact to margin and why.

The Solution:

We consolidated over 250 data files to build a bottom-up transactional cost-to-serve waterfall, which was utilized to identify price leaks and low-margin customers. Then, we implemented targeted price adjustments and redesigned programs and policies that were causing the most price leakage. This resulted in an 8% increase in revenue growth, increased compliance, and ongoing visibility to identify price leaks.

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