Case studyIMPROVED PROFITABILITY CALCULATIONS

Usually, cars are produced in several basic models, which customers can further customize by selecting a variety of extra equipment. Our client, a leading automotive company, monitored only the aggregated numbers of extra equipment profitability. To allow for a deeper detail of reporting and planning, we integrated data from more than 10 existing systems and designed a customized business logic, which splits the evaluation into each single piece of equipment - its costs, effective price and profitability – in both the cases, when purchased individually as well as part of a package including more pieces. On top of that, we implemented a tool that allows the management of the company to forecast and compare various scenarios for extra equipment sales and profitability, based on customized inputs. Better management of the products and re-pricing is bringing improved heavily profitability figures, as well as strategy plans about the extra equipment to focus on.