Background
Active in more than 30 countries with 30,000 employees, our client is a leading worldwide provider of sustainable packaging solutions, paper products, and recycling services. With a large portfolio of customers, the management team needed an in-depth understanding of which customers are more profitable in order to make more strategic decisions.
Challenge
Customer profitability is not only measured by the revenue a customer brings, but also by the related fixed and variable costs, the effort needed to maintain the customer, and the effect the customer has on the reputation of the client. A key challenge is to combine these factors to accurately define which customers are positively impacting business margins.
Approach
- Standardize cost and cost measurement principles across 17 countries and ERP systems. - Harmonize business definitions and resolve data quality issues by implementing a master data management solution. - Create a dynamic reporting system, providing business users with a visual method for defining which customers to retain. A whale curve graph allows end users to dive into all available profitability details per customer.
Key results
Benefits
Our client gained a better understanding of customer profitability by grouping all available information into customer profitability segments and regions. This enabled them to establish benchmarks to take more strategic actions, resulting in a significant increase in overall profitability.
Technology partners
IBM
IBM is a leading global hybrid cloud and AI, and business services provider. They help clients capitalize on insights from their data, streamline business processes, reduce costs, and gain a competitive edge in their industries.
10
years of partneship
2x
Gold Partner: Analytics and Data science
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