Affordability is a Journey to a Destination

How are you planning to grow your business?  Do you believe more sales provides the right approach to make business better?  Do you think that selling more creates more demand?

A different journey and track is Affordability.  Affordability provides increase in demand through the delivery of value, at lower cost and price, while increasing responsiveness and quality.

Selling more under a system fraught with waste and inefficiencies puts an organization on a path of eventual failure.  If on-time delivery challenges exist with quality issues and excessive cost, increased sales puts additional pressures on a system that misses deadlines and customer expectations and requirements.

It has been calculated that it takes 40% more sales to increase ‘Net after tax Profit’ by 40% … but, when applying Affordability, most organizations can realize a ‘Net after tax Profit’ of 40% improvement by affecting a 20% reduction in Non-Core indirect costs and waste.  This provides money for re-investment in value added areas, increases speed and quality, and above all, increases demand.