How to Optimize Sales Mix to Maximize Profitability

Focusing only on reducing the Cost of Goods Sold (COGS) assumes that lower production costs will automatically lead to higher profitability. However, this perspective neglects important factors like market competition, customer demand, and product complexity.

Standard costing methods can often mask true profitability by averaging costs, which may result in suboptimal decision-making. To achieve sustainable profit improvement, companies must adopt a holistic approach that considers the product mix, customer segmentation, market shifts, and operational constraints. Optimizing the entire value chain, rather than merely cutting costs, is essential for ensuring long-term value creation and maintaining agility in a dynamic market.

With Value Chain Optimization, companies gain access to accurate financial modeling that empowers them to make informed decisions and drive meaningful results.

Your Key Decisions Optimized

Portfolio optimization
Product priorities
Cost to serve
Service level strategy

Solving Complex Questions

Are we losing market share because we do not have the right products?
What products within our portfolio contribute most to the margins?
How can we improve Customer Lead times?
What is the optimal cost-to-serve?
What other opportunities do we have based on service capacity?

Demonstrated Value

Productivity and margins

Production throughput

Margins (Ultimately structural EBITDA and free cash flow)

Inventory throughput

Return on assets

Working capital

Download our Datasheet: Product & Customer Profitability

Real customers. Real reviews.

Accenture

Pierre Mawet, Managing Director – Supply Chain & Operations

"COVID-19 has put a spotlight on what happens when complex global supply chains are disrupted. While COVID-19 will pass, the need to understand how to continually optimize end-to-end supply chains in the face of unexpected disruption is here to stay. River Logic provides the intelligence necessary to build more resilient and agile supply chains."

Business Modelling Associates

Rod Stout, Co-Founder

"When you combine industry experience that is respected and trusted with a unique next-generation technology, it’s not too difficult to differentiate from the competition. When a client sees a solution swiftly solve today’s problems, while adding value, and realizes that it can be applied to address future challenges, it’s not too difficult for the client to make a purchasing decision."

Microsoft

Herain Oberoi, Sr. Director Product Marketing

"The addition of River Logic to our marketplace lets a line of business executives such as those in supply chain, finance, and marketing take advantage of predictive and prescriptive analytics to better align business strategies and operational functions."

PWC

Simon Avenell, Partner

"River Logic’s Platform allows us to answer many of our clients’ most important questions. This builds trust and allows authentic conversations, and it’s in these relationships that the power of our firm can be brought to clients and unlock unmatched value for their business."

We're Industry Experts.

From articles and e-books to white papers, videos, and more, this is your one-stop shop for everything River Logic. Keep up with upcoming events, read our POV on the industry, and more.

How to Optimize Sales Mix to Maximize Profitability

Download our Datasheet: Product & Customer Profitability

Real customers. Real reviews.

We're Industry Experts​.

We're Industry Experts.