Distribution Costing is Difficult
Distribution companies are complicated businesses with many dynamics that affect how they make and lose money. Complex issues, like rebates, multi-faceted delivery systems, multi-branch operations, third-party logistics, assembly, credit card processing and more all affect the cost structures of individual sales.
WayPoint is the world’s leading system because it costs out all the logistical issues inherent in a modern and sophisticated distribution business. The goal is to develop cost information granular enough to support Line-Item Profit Analytics (LIPA), which gives deep insights into the profit dynamics of the business. This goes beyond the summary assumptions made by Business Intelligence ventures. And you can’t rely on your ERP to do it.
For instance, it could reveal that high-margin sales of a particular product category lose money in a particular customer segment because deliveries typically don’t carry any other products. Or, an extremely aggressive price can be safely offered to an important client for a special bid, because the logistics cost is low enough to preserve a good profit rate on the reduced price.
To deliver on this, we invented Quantum Costing™, the world’s most advanced system for calculating costs and profits. This system computes hundreds of millions of incremental costs when distributing the expenses from your G/L to sales transactions. Cost and profit totals can be rebuilt for any invoice, product, account, territory or other element of the business.
The result is the world’s most sophisticated costing and profit system, delivering actionable information so your team can immediately and dramatically increase profits.
To support the computational load, we turned to custom-built ultra-performance servers for our data center. These state-of-the-art machines deliver results in minutes or seconds, so you can explore the dynamics of your business in ways never before possible.