Results
Improving how well your business communicates with and satisfies your customers has many benefits that will dramatically impact your bottom line:
Typical Benefits |
Bottom Line Impact |
· Effective communications with customers
· High customer loyalty
· Rapid responsiveness to customer needs
· Competitive offerings and prices |
· Increased sales |
· Streamlined operating processes
· Automation of labor-intensive tasks
· Linking with supply chain partners
· Elimination of rework for quality problems |
· Reduced operating costs as percent of sales |
· Reduced inventories
· Improved asset/resource utilization |
· Maintained / decreased investment costs |
And the collective effect of increased sales, reduced operating costs and improved asset utilization significantly leverage bottom line profits. For example (see graphs to right ), if a business, in which operating costs (mostly variable) are 50% of sales and investment costs (mostly fixed or step costs) are 40%, were to increase sales by 50%, reduce operating costs to 40% of sales, and avoid any additional investment, it's profits would jump 400%.
During consulting projects, we will estimate the benefits and bottom line impact of our problem solving teams' recommendations and establish performance measurement processes to help ensure the projected results are achieved.
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