In today’s highly competitive and volatile global marketplace, business leaders need rich and relevant information on the true profitability of the products and services they offer to customers. Yet for many, the apparently simple task of measuring profitability of offerings is buried in a morass of confusing and often arbitrary cost allocations. Cost analysis & restructuring is key to the true profitability of companies, especially for each product. DKC global trade consulting can help to adopt a structured, methodical approach to calculating profitability by cost restructuring and cost rationalization

To enhance reliability of internal data for the purpose of profitability solution, there must be complete alignment with the profit and loss (P&L) statement in terms of total net profit. This means that the net profitability on all elements (products, customers) in the structure must sum up to the reported profit. Therefore, the solution includes analysis of all profit factors general ledger, cost center, cost drivers, products, customers (sales channels). After optimizing the cost incurred, all factors will be realigned for the calculation and analysis of cost and profitability.