Manufacturing_Sales Gross Profit Analysis
1. Analysis background introduction
This case comes from a company specializing
in the manufacture of high-end industrial equipment. Founded in the 1990s,
after years of development, it has occupied a place in the global market. The
company's product line includes industrial machinery, automation equipment and
supporting parts, which are widely used in automobile manufacturing, aerospace,
electronics and other industries. Enterprises pay attention to technology
research and development and quality management, but in recent years, with the
rise in raw material prices and the intensification of market competition, the
profit margin has gradually narrowed. Therefore, the companyI hope that through
this sales gross profit analysis, we can optimize the structure of the sales
department and different product strategies, so as to achieve a goal and
improve the profitability of the enterprise.
2. Statement of key issues
This
analysis will provide specific evaluation and optimization suggestions for
enterprises:
How is the gross margin performance of
different sectors? Are there any significant differences?
How is the gross margin performance of
different product lines? Is there any significant difference?
How are the sales and gross profit
performance of different price segments? Do I need to adjust the pricing to
improve the gross profit?
Have you found a decline in gross profit in
specific products and markets? If so, what is the reason and how to deal with
it?
3. Analyze the plan
In response to the above analysis goals, we
take the following actions:
3.1 Determine key data indicators.
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Serial number
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Name of the indicator
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Paraphrase
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Analysis angle
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1
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Sales amount
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Total income from the sale of products or
services
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Actual value, last year's value, growth
rate, target value, achievement rate,
|
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2
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Gross profit
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Gross profit is sales revenue.The balance
after deducting direct costs (such as raw materials, production costs, etc.)
reflects the direct profitability of the enterprise.
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Actual value, last year's value, growth
rate, target value, achievement rate,
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3
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Gross profit margin
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The profit margin refers to the ratio of
the net profit to the sales income of an enterprise after deducting all costs
and expenses, which reflects the enterprise'sOverall profitability.
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Actual value, last year's value, growth
rate, target value, achievement rate,
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4
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Sales type
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Sales type usually refers to sales
channels or methods, such as direct sales, distribution, e-commerce, retail
and other different sales models.
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Direct sales, detailed channel division
of agency sales, compare the contribution of different sales types to revenue
and profit, and find out the most effective sales model.
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5
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Departmental organizational structure
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Departmental organizational structure
refers to the setting of sales teams or functional departments within the
company and how they operate, such as setting up sales teams by product,
region or customer segmentation.
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Analyze the sales and profit
contributions of different departments or teams, and evaluate the performance
differences between departments.
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6
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Sales area
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Sales area refers to the geographical
distribution of enterprise sales activities.
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It is often classified according to the
hierarchy of country, region, city or region, community, etc.
|
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7
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Product line
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Product line refers to various types of
products or services of the enterprise, and each product line represents a
category of related products.
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By analyzing the sales and gross margins
of different product lines, find out the most profitable product lines.
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8
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Product category segment
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Price segment refers to the division of
enterprise products according to type or price range.
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Adjust the product pricing strategy
according to the sales performance of the segment to improve sales profits.
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9
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Product level
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Product levels refer to different levels
or versions of enterprise products, such as major categories, subcategories,
etc.
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Analyze the sales amount and profit of
products at different levels, and identify the level of high-profit products.
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Description: The indicators selected in
this case are common indicators in analysis. Analysts should give priority to
the indicators that have the greatest impact on the business in their analysis
work to ensure that the purpose of the analysis is consistent with the business
goals and key performance.
3.2 Power BI Visualization Scheme
Description: The page data is random
simulation data, which is for reference only for analysis angle and Power BI
function display, and does not involve any actual business data.
4. Analysis and interpretation
Make a general understanding of the actual
value of the overall sales amount, gross profit, gross margin in the current
month, the annual cumulative value, the growth rate compared with last year,
and the achievement rate compared with the target plan. To determine which
angles the red warning appears, you need to understand it in detail.
Check the gross profit performance of
departments and product levels separately by direct sales channels and agency
channels, and find out the departments and products of companies with high
gross profit and low gross profit.
Department ranking. Sorting different
departments or teams in the company by sales indicators can clearly understand
the performance differences of each department and help management identify
departments with excellent performance and departments that need improvement.
Sales trend.
Through sales trend analysis, fluctuations in market demand can be identified,
such as seasonal changes, cyclical fluctuations or long-term growth/recession
trends. This helps enterprises to adjust their production and sales plans.
Product classification segment. Analyzing the sales performance of products in different types or
price segments can help enterprises understand the market demand in each price
range and evaluate the competitiveness of enterprise products in high-end,
mid-end and low-end markets.
Sales ranking of different models of
products. According to indicators such as product
sales or profits, enterprises can adjust product strategies according to sales
ranking data, concentrate resources on products with better performance, and
improve overall profitability.
5. Application effect
Through the above analysis perspectives and
methods, remarkable results can be achieved in practical applications:
Analysis of the gross profit of the
department,
Performance evaluation can help enterprises
accurately assess the profitability and contribution of each department. This
kind of evaluation provides an objective basis for departmental performance
appraisal, and can set up an incentive mechanism based on performance to
improve the enthusiasm and competitiveness of departments.
Resource allocation optimization: The gross
profit performance of different departments reflects their market efficiency
and profitability. Enterprises can optimize resource allocation based on these
data, allocate more resources (such as marketing budgets, human resources) to
departments with high gross profits, and maximize overall profits.
Cost control and efficiency improvement:
Departmental gross profit analysis helps to identify departments that do not
perform well in cost control and sales efficiency. The management can formulate
corresponding improvement measures based on the analysis results, such as
optimizing processes, adjusting supply chains or strengthening training to
improve the gross profit performance of inefficient departments.
Strategic decision-making support: Gross
profit analysis can also support the strategic decision-making of enterprises,
such as deciding whether to expand the sales team in a region or adjust the
market strategy of a department, so as to ensure the maximization of resource
utilization and the optimization of profitability of each department.
Analysis of gross profit from sales of
products
Product portfolio optimization: By
analyzing the gross profit of different products, enterprises can identify
which products are the most profitable, so as to adjust the product portfolio.
Focus on promoting products with high gross profit, and reduce or eliminate
products with low gross profit or even loss to improve the overall
profitability.
Pricing strategy adjustment: Gross profit
analysis can help enterprises evaluate the effectiveness of current pricing
strategies. If the gross margin of some products is lower than expected,
enterprises can consider adjusting the pricing or cost structure (such as
production costs and logistics costs) to improve their gross profit.
New product development and investment
decision-making: Gross profit analysis provides key data support for new
product development and investment decision-making. Lead toBy analyzing the
gross profit performance of existing products, enterprises can better predict
the market potential and profitability of new products, and guide the
development direction and resource investment of new products.
Sales strategy and marketing optimization:
Product gross profit analysis can reveal the profit performance of products in
different markets or channels, and provide a basis for enterprises to adjust
sales strategies and marketing plans. For example, enterprises can formulate
more targeted marketing activities according to the gross profit of different
products to improve the market share of high gross profit products.
Through these two analyses, enterprises can
comprehensively grasp the profitability of the business from the two dimensions
of department and product, and carry out resource allocation, strategy
adjustment and performance management in a targeted manner, so as to improve
the overall operating efficiency of the enterprise.