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COMPLEXITY

In today’s marketing driven business environment, complexity management has become the key issue for business managers.  To meet market demand, business complexity is driven by ever growing product portfolios which puts tremendous pressure on pricing, production, logistics and distribution systems. 

 

A simplistic approach utilized regularly is a Pareto approach to reduce complexity in order to bring the company back into a manageable size. Instead, our approach is to develop mathematical models and systems to manage this complexity to bring our clients competitive advantage. Complexity, if managed properly, becomes a strategic advantage.  A well-managed complex business model increases the cost of entry or the cost of doing business for the competition.

VALUE CREATION PLAN

Marketing and Sales Management

  • Defining customers needs

  • Branding

  • Pricing

  • Product management

  • Sales channel management

  • Establishing alternative sales  channels

Profitability

  • Gross Margin / Contribution Management

  • OPEX System Management

  • Product  mix complexity and sourcing politics

  • Cross-selling and CRM structure

  • Revenue Management Optimization

  • Best-in-class Operations  (utilizing optimization models)

  • Production Planning

  • Distribution and Logistics Planning

  • Warehousing

  • Pricing and revenue management optimization

Working Capital Management

  • Accounts Receivable

  • Accounts Payable

  • Inventory Days

  • Risk Management

SALES AND MARKETING

 

  • Establishing a sound marketing plan, brand positioning and periodic review is key to a successful business plan.

  • Pricing is the most critical factor.  Customers often don't have “near-perfect” market information;  therefore, the pricing model should be innovative.

  • For B2B sales, an empowered sales organization is critical in finalizing sales.  An advanced pricing system which is also aligned with the proper sales incentive program is key to higher gross margins and profitability.

  • Alternative sales channels and sales models are possible with strong IT infrastructure.

  • Advertising, media planning optimization and setting up a periodic review structure is key to effectively managing the least understood Opex item in marketing expenditures.

  • E-commerce is a marketing team's dream-come-true where every action of very customer is measured with countless KPI's;  however, to make sense of all of these numbers and to create an action plan based on these (sometimes conflicting) numbers is essential for successful marketing.

 

 

 

OPTIMIZATION

  • Businesses today are using analysis to solve daily problems without a sound mathematical model of the underlying processes.

  • Using Mathematical Optimization Models instead of classical ERP/MRP solutions can add huge benefits to complex business operations.

  • Effective Operations Research Models can be used in following areas:

    • Production Planning

    • Distribution and Logistics Planning

    • Manpower Planning and Scheduling

    • Portfolio Management

 

 

 

 

Profitability

  • Gross Margin / Contribution Management

  • OPEX System Management

  • Product  mix complexity and sourcing politics

  • Cross-selling and CRM structure

  • Revenue Management Optimization

  • Best-in-class Operations  (utilizing optimization models)

  • Production Planning

  • Distribution and Logistics Planning

  • Warehousing

  • Pricing and revenue management optimization

Working Capital Management

  • Accounts Receivable

  • Accounts Payable

  • Inventory Days

  • Risk Management

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