Poultry Product and Customer Profitability

Driving Product and Customer Profitability in Poultry Processing

A large Australian-based poultry processor required a structured poultry product and customer profitability framework to gain deeper visibility into cost and margin performance across its operations. Although the organization generated approximately $2 billion in annual revenue, its reliance on home-grown systems and spreadsheets limited transparency into product costs tied to assembly and disassembly processes. Leadership needed a governed platform capable of integrating yield data, cost allocations, and market-based profitability analysis.

The Challenge of Limited Profit and Forecast Visibility

The existing environment lacked sufficient visibility into raw material yields, labor allocation, overhead distribution, and post-manufacturing costs. As a result, the company struggled to forecast fully costed production outlooks and evaluate profitability by product, customer, location, and market. Without detailed drill-down capability into dependent processes, management could not effectively simulate how market shifts or operational changes would impact performance.

How ImpactECS Enables Poultry Product and Customer Profitability

• Calculate raw material yield costs and standard versus actual variances at the BOM level
• Perform meat valuation based on market pricing and actual cost performance
• Allocate labor using multiple drivers including per bird, kilogram, and tray
• Model profit simulations and production outlook forecasts
• Provide P&L visibility by yield, plant location, and market
• Support cost-to-serve analysis including outbound transportation and logistics costs
• Allocate client-defined overhead buckets and shared service costs
• Analyze product and customer profitability including terms, incentives, and transfer pricing

Business Impact Across the Protein Value Chain

• Improve production efficiency through cost-to-serve models and KPI analytics
• Reduce primary poultry processing time to approximately two hours per plant
• Strengthen forecasting accuracy with fully costed production outlooks
• Provide granular P&L visibility for individual products and customers
• Enable management to predict how market changes will impact profitability

With ImpactECS, the processor implemented a governed poultry product and customer profitability environment that integrates yield data, allocation logic, and operational KPIs. As a result, leadership gained scalable transparency into cost drivers and margin performance across plants, markets, and customer segments.

This disciplined poultry product and customer profitability framework created a flexible foundation for cost-to