Customer Profitability Analysis: Weymouth Case

Customer profitability analysis provides managers with the information that can be used to determine whether customer should be emphasized or not. In part- b second table, shown analysis that Weymouth has a low cost and Brookfield is the high cost to serve customers. This is because Weymouth required more sales orders, order taking process, more manager visits, normal and rushed deliveries than the Brookfield and Summerton. While, Weymouth has lowest cost this company is not profitable for the Methven firm, for the reason that is frequent order placement, 14 times in a quarter, low volume of orders, high number of rushed deliveries and numerous manager visits to the customer. Whereas, Brookfield place eight purchase orders in a quarter