CPAC® SET UP AND SUPPORT

Once a company becomes lean, the ongoing challenge is to stay lean as customer needs evolve. Company-wide operational measurements become an increasingly important addition to the financial picture. Using only financial measurements such as the Weighted Average Cost of Capital (WACC) does not give an operational overview, and traditional measures such as Activity Based Costing (ABC), in addition to being cumbersome and inaccurate, often focus only on variable costs. As the cost structure of a wholesale-distributor is primarily fixed cost, operational measurements need to recognize resource utilization: how effectively are the resources being applied? One such measurement is CPAC® (Customer Positioning and Control), a simple, reliable method for measuring the requirements in terms of both cost and effort, necessary to meet the demands of your customers. Learn more about CPAC® here.

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