For this company operating in the Nordic countries, monitoring product profitability between countries and launching products was nearly impossible because they lacked a uniform product cost calculation method. In addition, evaluation of the effects of product launches on profitability was not straightforward, nor could it be examined against the backdrop of the company’s performance development.

These challenges were solved by creating a uniform model for monitoring the product portfolio, while harmonizing product calculations among countries. In addition to these changes, the innovation process became a part of product launches and defined profit targets were introduced for the various product types. The amount of training offered was also increased.

As a result of this development work, we were able to create a uniform model for monitoring product profitability, as well as a clear and accurate picture of the effect of the product portfolio on the company’s operations. At the same time, the number of product rows was reduced, product profitability was improved, and the company started to grow on the basis of its enhanced commercial product selection.