Analyze profitability beyond reported margin.
Compare portfolio options and their operating impact.
Bring cost-to-serve, demand health, inventory exposure, operating complexity, and resource constraints into the same analysis as revenue and cost. We build an agentic analytics application that helps users compare the profitability and operating impact of portfolio options across products, SKUs, customers, and channels.
Revenue and margin alone do not show the resources and operating complexity behind each product, customer, and channel
Products and customers with similar reported revenue and margin can place very different demands on inventory, logistics, production, sales, and service teams. The analysis needs to show both how costs are incurred and how a proposed action may affect the rest of the portfolio.
Product Economics
Analyze revenue, variable costs, contribution margin, pricing, discounts, and cost changes by product and SKU.
Cost-to-Serve
Analyze the costs of logistics, storage, small-order handling, returns, and service activities by customer, channel, and order.
Inventory & Working Capital
Review inventory turnover and aging, shelf life, inventory disposition risk, and working-capital burden alongside profitability.
Capacity & Complexity
Examine constrained production, procurement, and logistics resources and the complexity created by the SKU portfolio.
Analyze profit drivers and portfolio options across products, customers, and channels
Product & SKU Profitability
Assess revenue, cost, contribution margin, and the effects of pricing and product-mix changes by product and SKU.
Customer & Channel Profitability
Analyze profitability by customer and channel using commercial terms, service costs, and order patterns.
Cost-to-Serve Analysis
Connect the costs of order processing, storage, transport, returns, and support activities to the customers, channels, and orders served.
Product Mix & Capacity Economics
Compare how product mix and the use of constrained resources affect overall portfolio profit and operating efficiency.
Lifecycle & Inventory Exposure
Analyze product lifecycle, demand shifts, inventory aging, and disposition risk through a financial and operating lens.
Portfolio Scenario Analysis
Compare the financial and operational implications of changes in price, cost, demand, product mix, and portfolio composition.
SKU rationalization requires more than discontinuing unprofitable items
Discontinuing a SKU based only on current profitability can cause fixed costs to be reallocated across remaining products and have unintended effects on sales by customer and channel, production efficiency, and inventory disposition. The decision needs to consider the SKU’s economics, its operating and strategic roles, and the expected effects of discontinuation.
Economic Contribution
Assess revenue, variable costs, and contribution margin, and distinguish avoidable costs from costs that would remain after an action.
Demand Health
Review demand volume, growth, variability, customer and channel concentration, and substitution options.
Inventory Exposure
Examine finished goods and raw materials, inventory aging, shelf life, and options to consume, convert, or dispose of stock.
Operational Complexity
Assess changeovers, minimum order quantities (MOQ), small orders, logistics, quality controls, and other complexity associated with the SKU.
Strategic Role
Review the SKU’s role in key customer and channel relationships, the broader product range, cross-selling, and market entry.
Discontinuation Impact
Model fixed cost reallocation, inventory and raw-material drawdown, substitution, and possible customer attrition after discontinuation.
Move from profitability diagnosis to option review and outcome tracking
Combine the profitability model, business knowledge, scenario engine, and agent skills in one application
We do not rely on a single P&L table or treat an LLM as the analytical engine. Data and calculation logic, cost-allocation rules, business rules, and scenario models are managed separately; the agent follows the analytical workflow defined for the task.
Profitability Data Foundation
Organize revenue, cost, inventory, order, product, customer, channel, and operational activity data at the required level of detail.
Profitability Model
Implement calculation rules for contribution margin, cost-to-serve, avoidable costs, and portfolio P&L.
Business Rules & Knowledge
Structure cost allocation rules, exceptions, product and customer classifications, strategic constraints, and review criteria.
Scenario Engine
Estimate, under stated assumptions, the effects of changes in price, cost, demand, product mix, and portfolio composition, along with any resulting fixed cost reallocation.
Agent Skills
Define procedures for profitability diagnosis, driver analysis, portfolio segmentation, and scenario review as agent skills.
Decision Support Application
Present evidence, likely drivers, scenario impacts, unresolved items, and proposed actions for human review.
Connect finance, sales, supply chain, and operations data using common analytical definitions
Finance & Costing
Connect revenue, standard and actual costs, cost allocations, budgets, and actuals to the profitability model.
Sales & Customer
Use data on customers, channels, contracts, pricing, discounts, promotions, and orders in the analysis.
Supply Chain & Operations
Connect data on demand, inventory, production, procurement, logistics activities, and resource usage to cost-to-serve and portfolio economics.
Planning & Execution
Support the incorporation of agreed portfolio actions into budgets and sales, procurement, and production plans, then track outcomes.
Start with the profitability or portfolio decision under review
Tell us how profitability is calculated today, the unit of analysis, the cost and operating data available, and the SKU, customer, or channel decision under review. We will help define an initial application scope.
Discuss Profitability & Portfolio Analytics →