Profitability Enhancement
Rapid industry consolidation and increased competition require companies to continuously monitor and improve profitability. The world is increasingly becoming multiproduct-centric — many products with short life cycles. Successful apparel companies are able to proactively assess market potential, customer demand, and product viability and are also able to continuously reassess the margins earned by individual products in order to target revenue stimulation and cost containment opportunities and identify low- or negative-margin products.
Visionet Systems Inc. provides business and technology consultancy services that help apparel and other soft goods industries to address the following issues, resulting in enhanced profitability:
- Nonexistent or ineffective processes to assess and report revenues, costs, and margins by business unit, product, customer, and geography
- Cost assignment and allocation methods that are either undefined or noncompliant with regulatory or management decision-making requirements
- Tax transfer-pricing methods that are inadequate to minimize corporate tax burden
- Ineffective management of product life cycles to maximize profitability
- Lack of appropriate performance measures linking sales efforts and revenue growth with profitability targets
