Increasing Margins

Profitability Please.

In 2019 Solar Flare Services were re-engaged by the new CEO to provide investigation, analysis and recommendations on product and service profitability for this multimillion turnover engineering and professional training company.

How the Service Helped?

We provided expert resource to undertake an extensive investigation of the large service and product portfolio to determine precisely which were making money.

The Challenges.

The existing finance system was being transitioned. The previous system did not provide the necessary granularity required to make decisions on individual product and service profitability.

Return on Investment.

Loss making products were identified quickly, resulting in ROI achieved before the assignment was complete.

Executive Summary

Training 2000, a company with a 50-year heritage, offers a very large number of products or product variations and services. These include funded programmes making the analysis of individual programme profitability time consuming and complex. Solar Flare Services provided a complete profitability analysis within 3 months of all products and services and produced a tool that could be used to assess new product profitability.

Results

• A complete view of all product and service profitability produced at individual product level.
• Education of the product managers about their product profitability so they could make informed decisions.
• Loss making products “killed” or modified to a profitable delivery model.
• A tool delivered that can be used to assess profitability on all new product developments.