Margin looks fine in the consolidated P&L, but nobody can say with confidence which products, customers or orders actually make money and which ones quietly destroy it.
Pricing is set from history and adjusted by instinct. Discounts are approved to protect volume. Finance, Sales and Production each defend a different number, and the debate always ends the same way — without a decision rule anyone trusts.
Does that sound familiar? You are our client.
- Rebuild product and customer profitability on a Throughput basis — price minus truly variable cost — instead of allocated overhead.
- Identify the structurally loss-making 10–20% of the portfolio and decide, deliberately, what to do with it.
- Give Sales and Finance one shared number to negotiate price and mix around.
Standard cost accounting allocates fixed and semi-fixed overhead across products and customers by volume or headcount, not by what each actually consumes of the constrained resource. That makes almost every product look “profitable enough” on paper, so nobody has the standing to say no to a customer, an SKU or a discount — the accounting system itself is generating the wrong signal, not just the people reading it.
Sales is measured on volume, Finance on margin percentage, Production on utilisation — three different formulas competing for the same pricing decision, and each function is defensibly right by its own number. Without one shared measure, the debate repeats every quarter and the loss-making 10–20% stays hidden inside the average.
+10% relative improvement in gross margin
+10% relative improvement in gross margin, plus a repeatable profitability decision framework the company keeps after we leave.
Paid mostly for the result, not for time on site.
A fixed component covers the diagnostic and implementation plan for this offering. The larger part of our fee is tied to the EBITDA or cash result we actually help deliver — measured on your ERP, not ours.
Value Leakage Diagnostic
Implementation plan.
Of the measured EBITDA effect, minus the fixed fee.