Argano Accelerates Industry Dominance With Strategic Acquisition Of Profit Velocity

Navigating the intricate world of manufacturing and heavy distribution is no small feat. Companies often find themselves in a constant struggle—juggling the complexities of pricing and profitability, customer and product rationalization, and maximizing the utilization of production resources. The challenge is not just about efficiency but about aligning diverse departments toward a common goal.

Argano, a trailblazer in the industry, has recently made a move that could reshape the entire landscape. In acquiring Profit Velocity, a company with a decade-long legacy of tackling these challenges head-on, Argano is gearing up to revolutionize the sector. Chip Register, the forward-thinking CEO of Argano, sheds light on the industry’s pervasive issues. “Understanding the decisions that maximize profit across your production resources, customer & product mixes and influencing these decisions across departments from Finance, Sales, Marketing, and Operations —it’s a fundamental problem that demands innovative solutions,” says Register.

Profit Velocity, once an independent powerhouse, is now seamlessly integrated into Argano’s arsenal, emerging as a transformative tool that delves into actual profitability. It goes beyond traditional metrics, providing real-time, actionable insights into profit margins across a complex mix of products. Register emphasizes, “Profit Velocity is about the way we do business and the speed at which we can provide information to our clients.” 

At its core, the concept of profit velocity, rooted in the theory of constraints, becomes a catalyst for change in large companies. It shifts the focus from conventional unit margins to actual throughput, offering a comprehensive understanding of profitability. Register remarks, “It’s about looking at products, customers, and locations to provide previously unknown information about what products should be produced, where products are sold and to whom, and how they ultimately maximize profit for companies”

To unite disparate groups within an organization, Argano plans to leverage Profit Velocity as a proprietary secret weapon. Internally, it has become an analytical powerhouse, driving consulting and advisory services. Integrated with Argano’s existing strengths in large system implementation, the company is poised to deliver comprehensive solutions from assessment through monitoring.

Highlighting Argano’s prowess, Register introduces the concept of the flywheel; at the center are the decisions of what products, customers, and locations to produce and sell.  However, these decisions are integrated with areas such as sales compensation plans, marketing campaigns, supply chain needs, and enterprise financial planning as examples.  Profit Velocity lays the groundwork for effective decision-making around growth and creates an integrated approach to influencing the operational decisions within a business.

The Argano team is excited to bring this concept to its customers as a product and service, ensuring that they have the right information to make the right decisions and maximize profitability. This is consistent with the company’s goal of increasing growth, shareholder value, and enterprise value.

The solution that Argano has developed continues to influence key operational decision-making as customer demand shifts, markets change, and costs adjust, providing real-time insights into the business. This allows Argano to track the return on investment of their work with clients and partners, driving continuous value for them.

Quoting Register, “Profit Velocity will play an important role in refining decision making for complex product mix companies across food and beverage, metals, paper/packaging, speciality chemicals, and building products to a new few industries.  The solution drives companies towards increased profitability and high performance.” The nimbleness of Argano is emphasized, with Profit Velocity showcasing tactical opportunity areas in a matter of weeks.

Looking toward the future, Argano envisions Profit Velocity’s integration into various business sectors. The parameters of profit analytics for complex organizations can be adjusted using ‘what-if analysis' to allow for greater flexibility in planning, supplier renegotiation, and pricing decisions to name a few areas. An AI component is currently under development to enhance data interpretation and further extend the platform’s capabilities.

Argano’s impressive track record, with the acquisition of 17 companies in the past three and a half years, signals a relentless pursuit of innovation and growth. Register reflects, stating, “Our journey of acquisition has been instrumental in shaping our capabilities. Now, with time-based profit analytics, we are set to revolutionize this sector in ways previously unseen.”

Argano’s strategic acquisition of Profit Velocity positions the company as a transformative force in the industry. The combination of Profit Velocity’s groundbreaking tool and Argano’s expertise heralds a new era of efficiency, profitability, and high-performance business operations. This strategic move solidifies Argano’s commitment to revolutionizing the sector and shaping the future of manufacturing and distribution. 

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