Profit Management and Cost Reduction

The concept of Profit Management dictates all functions and processes within an organisation and, extending from the organisation into its suppliers and customers, impacts profitability and continuously needs measurement and review to optimize performance and results. Profit Management includes the strategy and decision of how to deliver activities that support the delivery of value to the customer, the cost of channel engagement and product/customer profitability and the assets required to deliver value.

Profit Management includes Cost Reduction, Working Capital Improvement (Accounts Receivables (AR), Accounts Payables (AP) and Inventory) and Margin Improvement.

For more information on the various aspects of Profit Management please take a look at the following documents:

• Activity Based Profit Management
• Delivering an Effective Cost Reduction Strategy
• Fundamental Cost Reduction
• Profit Management

We hope these publications add value to you as you continue to build your businesses and we encourage you to contact us with your questions observations and suggestions.