Bottom Line Focus

Bottom Line Focus

Bottom Line Focus

Shifting Focus to the Bottom Line: Addressing Profitability at a Granular Level Can Improve Margins by 2 to 5 Percent

Following a multi-year honeymoon phase, the CPG market stalled during the first half of 2017. For the first time in recent memory, inflation-adjusted earnings fell to zero in 2017, and prices are expected to see continued downward pressure. Consequently for manufacturers, meeting financial goals now will require a renewed focus on the bottom line.

Fortunately, the immediate financial returns are substantial. Companies can improve their margins by up to 5 percent, provided they followed a proven, comprehensive three-phase approach. This includes relying on a price-cost waterfall model, even with data gaps, to measure the true drivers of profitability business-wide; identifying opportunities for improvement, such as with cost, customer/product mix and price; and prioritizing opportunities by value and executing them with clearly defined owners and timelines.

IRI’s latest Point of View, “Shifting Focus to the Bottom Line: Addressing Profitability at a Granular Level Can Improve Margins by 2 to 5 Percent,” offers insights on refocusing efforts to improve the bottom line, including how to drive efficiencies, overcome barriers and capitalize on the next inevitable upturn in the market.

Back to Insights

 How can we help you supercharge growth and profitability?

FACTS ABOUT US

95% of CPG, retail, and health and beauty companies in the Fortune 100 work with us.

 

Answer the question below:
= eight - seven