Who—and What—is Profitable?

Profit contribution information has significant strategic value for companies. In spite of this, many companies don't track profitability by customers or by products. Our research makes a strong case for why they should begin doing so. Having good profit information can help companies make better decisions on products and customers, spot small problems before they turn into bigger ones, and at the end of the day create closer supply chain relationships.

By Robert Sabath, Patricia J. Daugherty, Daniel D. Mattioda, and Haozhe Chen -- Supply Chain Management Review, 7/1/2007

Profit contribution information has significant strategic value for companies. In spite of this, many companies don’t track profitability by customers or by products. Our research makes a strong case for why they should begin doing so. Having good profit information can help companies make better decisions on products and customers, spot small problems before they turn into bigger ones, and at the end of the day create closer supply chain relationships.  

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