New cost modeling capabilities enable manufacturers to predict
the impact of cost changes for even better control over profitability
San Francisco, Calif., October 24, 2006 — Maxager Technology, the original provider
of velocity-driven enterprise profit optimization solutions, today announced Maxager
7.3. Building on its unique “profit-per-minute” approach, version 7.3’s new cost
modeling capabilities provide manufacturers even greater control over profits and
return on assets by enabling them to predict the impact of cost component changes
and analyze in great detail the cost-to-serve any customer or market.
“Maxager solved the extremely difficult challenge of integrating production velocity
data and margin information some time ago,” said Michael Rothschild, Founder and
CEO of Maxager. “Now with the introduction of our advanced cost modeling
capability, our customers can gain an even more detailed view into the true sources
of their profitability. Our advances in cost modeling will allow our customers to
make better decisions and exert even greater control over their bottom line.”
Maxager 7.3 allows an unlimited number of cost components, both variable and
fixed, to be interactively modeled for specific products, customers, markets,
salespeople, and production facilities. Fast, precise cost modeling enables customers
to gain even tighter control over the profitability of individual products, customers,
deals, markets, regions, sales teams, and production facilities.
“Achieving precise visibility into profitability is no easy task,” added Rothschild.
“Companies looking to use the profit-per-minute approach can either take the long
road of in-house development — which requires both technology and profit-perminute
domain expertise — or use an existing commercial solution. Companies such
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as Dow Chemical and Owens-Illinois have chosen to go with Maxager as they want to
reap the benefits of a profit-per-minute approach now.”
Manufacturers using the profit-per-minute approach are able to stop profit leakage
worth 3-5% of revenue. For a $1 billion revenue company, this is equal to an extra
$500,000 to $1 million per week on the bottom line.
Additional features in Maxager 7.3 include:
- Expanded variance analysis and drill-down capability
- New report and chart types
- Enhanced security options
- Multiple currency and unit of measure capability
About Maxager Technology
Founded in 1996, Maxager’s patented enterprise profit optimization (EPO) solutions
help leading chemicals, metals, electronics and other complex manufacturers such as
Dow Chemical Company, Severstal, Owens-Illinois and Siliconware Precision
Industries increase cash and profit worth 3-5% of revenue. Uncovering profit gain
opportunities that are obscured by traditional “margin only” analysis, Maxager uses
both margin and production velocity information to analyze history and generate
realistic forward modeling that provides management teams an entirely new level of
control over Return on Assets (ROA) — the key driver of shareholder value. Ideal
for manufacturers with a wide range of products, customers and assets, Maxager’s
unique technology calculates precisely how fast each product, customer, or market
generates cash and profit from the assets, allowing managers to truly optimize
product mix & customer mix profitability, sales & profit planning, strategic
pricing, and production planning. New customers typically begin reaping benefits
within 60 days. Maxager is headquartered near San Francisco with offices in Europe
and Asia.
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