Apple’s fiscal first quarter revenue for 2013
totaled $54.5 billion. Samsung’s 2012 fourth quarter revenue
amounted to $52 billion
*. Not too shabby for two of the world’s largest smartphone manufacturers. But what if Apple and Samsung were losing billions of dollars each quarter due to improper revenue management? Every manufacturer faces revenue leakage. And your organization might be at more risk than you think.
|Click "Read More" below to view the full infographic|
According to Gartner, inefficient revenue processes can cost companies 1-2 percent of total revenue
. To put that in perspective, let’s see what toll that percentage would take on Apple and Samsung’s most recent reported quarterly revenues. Based on that rate of revenue leakage, both Apple and Samsung could have lost over a billion dollars each, if the companies lacked proper revenue management processes.
Follow the smartphone money trail with our infographic below to find out more about where and how high-tech and manufacturing companies could be losing billions of dollars a year
Complex pricing incentive programs between the manufacturer, distributor, retailer, and consumer can help high-tech and manufacturing companies stay competitive by moving more products faster and more profitably. Manufacturing and technology companies rely on these creative sales incentives -- like rebates, chargebacks, and brand promotions -- to stay competitive in a crowded industry. They determine payouts to channel sales partners based on performance criteria like sales volume, percent of floor space, sell-by dates, and more. But despite the importance of such promotions, 64 percent of businesses still rely on endless chains of complex spreadsheets to manage their finance functions
According to both PricewaterhouseCoopers and KPMG, more than 90 percent of corporate spreadsheets contain material errors
, which can cost businesses an estimated $10,000 to $100,000 per error per month. Besides errors, spreadsheets used to track and execute complex pricing incentives can quickly grow unwieldy, and cause miscommunication and delays.
These risks translate into overpayments, underpayments, and duplicate payments that slash margins and can damage channel partner relationships. If your business uses spreadsheets to manage promotions and incentives, you need a solution that automatically tracks milestones and executes payments
. With an automated solution, your organization can better protect its revenue, which, as the hypothetical examples of Apple and Samsung show, can have a big impact on your bottom line.Click here to download the Revitas for manufacturing and technology solution brief
to learn more about reducing revenue leakage in your organization.*Quarterly revenue converted from Korean won to U.S. dollars on Jan. 25, 2013.