Are shipping costs wiping
out your margin?
Cost of Goods Sold
PARCEL MARGIN ANALYSIS
Product profit decision tools
are just a few clicks away.
Dashboards provide everything from an executive overview
to drilling down by individual invoice or shipment.
You determine prices for your products based on many factors: raw materials, labor costs, market value . . . but are you factoring in the impact of shipping? Parcel Margin Analysis provides managers with the true profit margin on each product sold, considering gross margin, the total transportation expense required to service the order, and revenue capture in the order process, for example, flat rate shipping fees.
PARCEL MARGIN ANALYSIS
Sales Order Data
Integrating the vital elements of sales order data, cost of goods, fees, and total transportation costs, Parcel Margin Analysis delivers profitability insights on your customer, the order, and products fulfilled, through reports and dashboards that expose the details necessary to drill, discover, and decide. You have product profit decision tools at your fingertips – all within a few clicks.
PARCEL MARGIN ANALYSIS
With Parcel Margin Analysis insights, you can make corrections in plans or
in flow to ensure margin levels are consistently and profitably maintained. Our software also helps minimize unplanned costs that normally can’t be billed to your customer.
Parcel Margin Analysis connects your Parcel Costs with our Business
Impact Analytics Sales & Orders model to provide business intelligence
and analytics on how parcel shipping costs are impacting your margin.
Complete command and
control of data
Full visibility to cost of goods and cost of sales focused on margin management
Ability to make a direct
impact on EBITDA
Clear visibility to costs and trends derived from multiple data sources, delivered to one single source of truth
Insights to make corrections in plans and flow to ensure a consistent and profitable margin
Minimize negative effects of unplanned margin erosion
With Parcel Margin Analysis, it’s up to you how to allocate parcel costs, all customized to how your business operates, whether by customer, product, weight, or dimensions. In addition, customer segmentation models can be improved, identifying product and customer behavior trends hidden within complex data sets and disparate systems.
Gone are the days of manual spreadsheets. Empower your
data-driven organization to improve your bottom line and gain
(typically) 5%-10% on gross margins and 1%-2% EBITDA
Expose the true impact parcel costs are having on your margins with Parcel Margin Analysis.
Parcel Margin Analysis Q & A
Parcel Margin Analysis is a business analytics tool that provides critical sales and profitability analysis inclusive of actual parcel shipping costs. PMA answers a critical and difficult question for companies that use it: How much am I really making on my products inclusive of parcel shipping costs?
Companies are faced with difficult pricing decisions trying to recover costs for shipping. Do you include shipping for “Free” and absorb the cost? Do you charge a flat rate for shipping? Do you estimate and then charge your cost or with a slight mark up? There is no single right answer, but there can be many wrong ways. No matter how you decide to deal with shipping costs, they can erode margin, especially when underestimated. PMA provides the necessary insight to quickly assess the impact your shipping decisions are having on margin.
We work with your team to routinely access your sales and cost of goods and bring them into a data model to reveal your sales margin. Using your actual parcel shipping costs from our Parcel Spend Intelligence solution in combination with your sales data, PMA clearly exposes the impact parcel shipping costs are having on your margin. The analysis is delivered how you measure it, whether that’s by customer, individual product, sale, or SKU.
Can you get the same results by doing a spot check analysis or using your “gut feel”? Why chance it when PMA provides the insight on a weekly basis so that you can see exactly what is going on and make data-informed decisions.
Through various integration options, PMA can automatically gather sales order data, cost of goods, fees, and parcel transportation costs to provide profitability insights on your customer, the order, and the products fulfilled. Our team works with your IT team to optimize the connection to internal data, and we leverage our Parcel Spend Management platform to automatically gather actual parcel shipping costs directly from the parcel carrier’s billing center.
PMA is extremely user friendly and intuitive. We have over 23 years of experience in making data accessible to entire organizations. The reports are built out with your involvement to make sure we are using your terminology, and the data is presented through clear and correct visualizations and reports. Users can quickly identify issues and drill into the data instantly to identify root cause and take action. If you want to see it in action, we are happy to show you.