Learn How Throughput Influences Your Bottom Line

When we talk about throughput profitability, we’re talking about the intersection of traditional profit measures and measures of operational effectiveness – essentially, how quickly can a business make the most money. Every organization’s money-making ability is constrained by time and by its finite resources:

  • A manufacturing business has a set number of machines or lines
  • A distributor has a fixed amount of floorspace or number of trucks to transport goods
  • A service-based business only has so many people who can do the work

INSIGHT2PROFIT helps our clients do more and earn more with the resources they have.

Our throughput profitability analysis focuses on determining the best way to utilize your limited capacity – be it in terms of equipment, delivery vehicles, or people – by identifying which products or services yield the most profit dollars in a given amount of time. With that information, we then work with you to set price points and develop a strategy for growth based upon the capacity utilization that drives the most profitable mix.

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