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Margin Hunter Margin Hunter is a business model that improves margins by at least 1% of sales.
It establishes customer and product profile based on the margin they generate and acts as the spring board for managing overall performance of the organisation.
Margin Management Journey consists of;
1. Establishing the margin profile of customers and products.
2. Analyse and understand the profiles and their contribution to the strategic objections of their organisation.
3. Establishing a cross functional `Vision Team`.
4. A days workshop with the `Vision Team` to identify opportunities and actions to improve margins.
5. Practical support on commercialising the identified opportunities.
Margin Management Journey begins with analysis of existing data and presents a simple, easy to understand high level report. This is followed by a one day practical workshop to understand the output which forms the basis of improvement activities, with the desired output as an action list for different functions targeting pricing, cost base improvement and optimising supply chain activities.
This business model has been proven to result in a minimum of 1% or £57,000 to be added to profits for a £5.7 million sales value, if all the agreed actions have been implemented.
Margin Management Journey continues well beyond our intervention and engagement, as your team will be equipped and empowered to be innovative in their approach to `Margin Challenges`, thus continuously adding to your competitive advantage over time.
Margin Hunter established profiles will facilitate in;
Margin Management process will contribute to;
Benefits gained from Margin Hunter Profiles
Price Improvement example
Pricing policy was changed from cost plus to adapt to market conditions. Components at higher than average margin resulted in price point gain of GBP £80k in the first 6 months of implementation.
Cost Base Improvement example
Some of the low margin products, raw material composition was changed to use 30% recycled material reducing the raw material cost by 8%.
Operational Performance Improvement example
Multi divisional view contributed to production prioritisation to improve OTIF (on time in full) by 20% reducing customer complaints by 90%.
Optimising Supply Chain Activities example
Finished product made to order prioritisation resulted in changes to supplier`s delivery schedules to receive raw material `Just in Time` rather than minimum stock holdings.
Continuous Process Innovation example
Establishment of `Vision Team` resulted in regular discussions of order book; customer special requests resulted in flexible yet better standardisation of product range.
Asset Management example
Product margin profiles resulted in dropping low margin products contributed to tooling replacement decisions GBP £120K investment savings.
The way forward to improve your business is to contact Colin Thompson
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