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Use Case

Product profitability analysis with Pigment

Optimize costs, improve revenue and protect and manage margins across all your products sustainably over time.
What’s holding you back
Without visibility into the financial impact of supply chain decisions it’s hard to know how to maximize profitability.
Inability to respond to unexpected costs negatively impacts margins
Pricing misalignments disrupt forecast volumes and production costs
Hidden cost drivers are difficult to find and resolve
Limited visibility understanding of the most profitable customers and products

Enhance product profitability

Analyze sales, costs, and profit margins, to understand your most profitable products and segments and restructure unprofitable activities to enhance margins across your product portfolio.
AI

Faster routes to cost optimization

Deeper insights, powered by AI, allow you to assess your cost drivers on a case by case basis, enabling you to eliminate unnecessary or hidden costs and optimize your operations.
case study

Make smarter, more connected decisions

Accurate, up-to-date profitability analysis and cost-to-serve data helps you make more informed decisions to reduce cost and optimize profitable activities.

KEY FEATURES FOR PRODUCT PROFITABILITY ANALYSIS

drill down

Drill into data

Dynamic modeling allows you to plan at the right level of granularity, adjust plans quickly and understand the impact of every decision, so you can move fast to mitigate cost and protect margins.

One connected view across your data

Connect all your data from across the business together, helping you gain a deeper visibility into COGS, gross margin, product revenue and more.

plan

Fast, flexible decision making

Scenario modeling helps balance supply against constraints, while AI assistants help you plan faster, uncover insights and operate with confidence.

Discover more Supply chain use cases

Frequently Asked Questions

What is product profitability analysis?

Product profitability analysis measures how much profit each product, product line or customer segment generates once all its costs are allocated. It shows which products deserve investment, which need repricing, and which destroy margin. Pigment connects sales, cost and margin data in one model, so finance, supply chain and sales teams see the same picture.

How is product profitability calculated?

Start with product revenue, subtract COGS to get gross margin, then allocate logistics, marketing and other costs to the product, for example with cost allocation rules. Contribution margin isolates the effect of variable costs. Pigment lets you plan at the right level of granularity and see how every decision changes the result.

How does Pigment support product profitability analysis?

Pigment gives you a complete view of product-level profitability by combining real-time data across sales, costs, and margins. This enables you to identify underperforming products, optimize pricing, and restructure unprofitable activities to protect and grow your margins.

What makes Pigment different from other profitability tools?

Pigment combines real-time, multi-dimensional analysis with scenario modeling, machine learning forecasts and AI agents on one governed platform. The Analyst Agent explains margin movements, and the Modeler Agent extends the model with new cost logic. Finance, supply chain and commercial teams work from a single source of truth instead of separate spreadsheets.

Can Pigment help reduce hidden costs in our product portfolio?

Yes. Pigment provides visibility into cost drivers at a granular level, so you can analyze COGS, logistics costs and cost-to-serve across products or customer segments, using cost allocation rules or activity-based costing. This helps teams uncover hidden costs and take action to eliminate waste and optimize operations.

How do AI agents help with product profitability analysis in Pigment?

The Analyst Agent runs variance and trend analysis on your profitability data and explains what drives margin changes. The Modeler Agent extends the model, for example with new cost allocation logic, with a plan you approve before it applies any change. Agents work within your access rights and leave a traceable record.

Can I model tariffs and cost shocks on product margins in Pigment?

Yes. Scenario modeling lets you test cost, pricing and demand changes, such as new tariffs, and see the effect on margin and the P&L before you act. Evenflo's FP&A team describes constantly modeling scenarios to decide how much cost it can absorb. Results depend on your data and model. Read more about scenario planning.

Can I analyze product profitability with my own data in the free trial?

Yes. In the Pigment free trial you can upload your own data, or use a dataset matched to your industry, and describe the profitability analysis you want to run. The AI agent builds a model and board you can refine and share. Usage limits apply to data storage, calculation capacity and AI credits during the 14 days.