If you are in the business of making, moving or selling tangible products, chances are your business is experiencing an unprecedented level of complexity. KPMG's tools and techniques offer a better way to manage business complexity—and optimize the profitability of your products and customers.
Complexity has become a major priority for company executives as they have seen their products and services proliferate over recent years - because of the fast pace of innovation and dynamic customer demand. Yet, most of this proliferation has not contributed to revenue growth. In a recent study, companies (on average) increased their total number of active products by 32%, but only grew sales 4%.
Further, companies are also dealing with a myriad of channels to market, much tougher service requirements being imposed by customers, and higher overall costs to serve.
Essentially, companies today are selling more products, to more places, under tougher conditions—with capabilities that have not kept pace. Companies are relying on inadequate information, and outdated analytics to understand what their information means. As a result, companies do not really know the cost of complexity facing their business—and more importantly, what they can do to manage it.
KPMG’s Complexity Management solution consists of data-driven diagnostics and tools to help measure the “true profitability” of each SKU in a company’s portfolio, uncover root causes and verify specific opportunities to unlock value. The solution relies on sophisticated data ingestion tools, advanced economic modeling & analytics, and interactive dashboards that allows users to evaluate dynamic scenarios and reach decisions to improve cash flow.
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