How much effort and cost
are you putting into customers and products
that have small or maybe even negative profitability?
Conversely, are you really providing the
level of customer service that your more
profitable customers should be receiving?
are questions most companies should be asking,
but that relatively few do in a comprehensive
The most recent issue of
Explores publication looks at the integration
of marketing and the supply chain, and includes
the graphic below, originally developed
by Deloitte Consulting.
CSCMP Explores, using Material Developed
by Deloitte Consulting
While the implication of the matrix
is worthy of a long article, in summary
it offers a recommended set of service policies
and supply chain strategies that considers
both how profitable a customer is (A to
D) and how profitable a product is (1-4).
Using this or similar strategies forces
companies to look much more closely at where
they really drive their profit, and to make
tough decisions that many would rather avoid.
What are your thoughts in
the matrix? Have you used a similar approach?
Let us know your thoughts at the Feedback