Product sales revenue and profits of an enterprise though a certain relationship, but the two are not proportional. As an enterprise administrator, the ultimate concern is corporate profits, not just revenue growth. If the sales go up, but profits did not go up, that business is busily working white. Therefore, the product sales revenue and comparative analysis of corporate profits, but also the potential value of mining sales data an important factor. If from this point of view of sales data, then we can proceed from the following aspects.
First, you can just from the product, analyzes the rate of profit contribution of products. For example, when a more unified enterprise product pricing, that is the same product sold to different customers adopt a uniform price (or price differential is not), you can analyze the costs of products and profit, to analyze product sales increases and profits relationship. In many of the ERP system, can be a line chart to an intuitive reaction to the number of product sales (income) and the relationship between corporate profits. This can help businesses make decisions, whether it is necessary to abandon the product. Under normal circumstances, if the product's sales up, but no significant increase in profits, then there would be no need to do this product.
The second is from the customer perspective, to analyze the customer's business value contribution. In some cases, may only be the product profitability analysis is not very scientific. Such as enterprise customers with a co-production of five products. Enterprises may have two products are sold at a loss, but the other three products, large profits. In this case, enterprises in order to retain this client, for those products are still at a loss to conduct production and sales, of course, its only for sale to this customer.
At this point, if just from the product point of view, obviously these two products should be stopped out. However, if from the customer's perspective, the ultimate will bring a lot of business profits, they should not be stopped. When an enterprise when this happens, you should stand on analysis of customer's point of view, rather than from the product point of view. In the ERP system, can analyze customer orders for a certain period of time. Can eventually get the customer's overall contribution to corporate profits, the situation can also receive each order, each order of products in the impact on corporate profits. These data can help companies to select high-quality customers, to develop the follow-up product strategy and provide a great help.
Third, it could help companies analyze the product after the change of a material profit impact. As customers in countries where a number of mandatory requirements may require the use of certain raw materials the product environmentally friendly materials. Then change these raw materials, its production costs will also change, then the profits of the enterprises will have what effects? This is also the need to analyze the problem. Business users can be assumed that when the sales price remains unchanged, after the change of raw materials, to the impact of future profits. Can also assume that the profit is expected to remain unchanged, if the raw material changes, the number of selling price will be increased to be able to ensure that the expected profits and so on. When a raw material products that are more involved, such as packaging cartons, it is necessary for analysis by hand would take a heavy workload. With the help of the system, you can quickly reach the right result. In short, business users can be seen from various angles to assess the price movements of raw materials change, or for the profit impact.
Product of cyclical analysis.
For most businesses, its products, sales trends may be cyclical changes. As the sun umbrella, then in June will be a rapid increase in sales; and wool will appear in the October blowout Quotes. Of course, these are more obvious, while some products will need to right the past three years or even longer, analysis of sales data can arrive at a correct conclusion. In the system, you can target specific products or certain types of products, sales data analysis to determine some cyclical pattern. If this is so, businesses can make prompt arrangements with the procurement of raw materials production or arrangement to ensure that customer delivery or to reduce procurement costs.
As can be seen from the above, ERP system the sales data is not just a simple record. Its greater value lies in its analysis of various kinds to the enterprise market, making the right decision-makers to provide data support. A certain sense, this analysis may be far more than the record of the data to be far more valuable. But having said that, these basic data also determine the reliability of analytical results. If the underlying data are wrong, even the best analytical model will fall short.
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