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Gross Margin Management
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Operational Performance
Operational Performance
The objective of Operational Performance is to deliver products
that customers perceive as good quality and value - on time and at the right cost.
The MarginMax
TM
solution assures that demand and production plans are in balance to minimize both unplanned inventory increases and missed sales. The S&OP model that is included provides the tools and process to train and involve the right people in all decisions about forecasts and production plans. All risks are clearly identified and quantified so management can make the optimal decisions every month.
Most companies today purchase a larger percentage of their cost of goods sold than ever before. That is why MarginMax
TM
provides a solution that groups categories of spend by supplier type and then applies proven strategies to reduce the overall total purchased cost.
Operations is a complex area that typically presents many opportunities for cost reduction. MarginMax
TM
requires that the projects chosen by product management to either enhance customer perceived value or reduce cost on the highest volume products get the highest priority and the resources in operations for rapid completion. Enforcing this priority in operations will enhance the product mix and provide the best gross margin dollar contribution.
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