Case Study
Specialty chemical cost-to-serve model development
Client situation
A leading specialty chemicals firm with a wide range of products required a detailed view of profitability of its products to maintain competitive and realign its sales and marketing organizations
Project approach
SDI employed its proprietary Cost-to-serve approach to develop an activity-based cost view for each product and service by industry, customer segment, and region, as well as defined a profitability-driven sales & marketing organization
Outcome
SDI analysis enabled material reductions in manufacturing costs and FTEs, while reorganization of sales & marketing ensured resource focus on most profitable customers