Home
Services
Value Chain Mgnt.
Client Benefits
Solutions
Industries
Expertise
FAQ
Latest

SUSTAINED INCREASE IN RETURN ON ASSETS

How is it measured?

Growth of margin (revenue-expense) divided by assets, period over period.

This clearly addresses the competitive objectives of profitability and can easily be measure against competitors' performance.

How is the result improved upon?

By increasing revenues, and/or decreasing the cost structure or the asset base.

How does VCM influence the result?

To only list a few of the areas:

v     Increasing revenues:

     Higher revenues from sales productivity.

     New market segments targeted with differentiated offerings.

     Revenues from new service offerings.

     New geographies covered through partnerships and alternate channels.

     Faster time to market through joint development with suppliers and vendors.

     Repeat purchases from satisfied customer getting more value and service.

v     Reducing expenses:

     Less customer churn and acquisition costs from satisfied customers.

     Lower cost through process improvement and collaborate system design.

     Less returns /problem resolutions through process coordination and quality management.

     Reduced procurement costs and inventory through supplier partnerships.

     Reduced distribution costs through channel partnerships.

     Lower cost of innovation/roll-out through joint development and coordination.

v     Improving asset turn-over (utilization) or reducing investment requirements:

     Lower inventory and in-process resource requirements through supply efficiency.

     Lower work-in-capital from supplier credit and on-time payment by clients.

     Optimal capacity utilization from synergy, specialization and leverage of network relations.

     Re-allocation to higher margin producing business by identifying value segments willing to pay a premium for the superior value and service.

     Shared investments or borrowed resources through partnerships.

     Minimal investments required through strategic distribution partners.

     Asset reduction through elimination or outsourcing of certain functions, or shifting functions to strategic partners capable of synergy and specialization or capacity availability at lesser cost than in-house solution.

Back to Client Benefits                                                                                         Next

Increased ROA
Higher Sales Productivity
Broader Market Reach
Better Partner Relations
Customer Loyalty

 

Home ] Resource Center ] What we do ] About us ] Site map ] Search ] Feedback ] Contact us ]

Send mail to Administrator@VXTConsulting.com with questions or comments about this web site.
Copyright 2003 VXTConsulting, Inc., Inc.