Network Economics

network economicsSuccessful management of internet, telecommunications, energy, water, postal, rail, road, ports and airport companies is highly dependent on the economic alignment of their supply chain. Traditional cost accounting for these network style businesses often fails to produce cost information suitable for investment decision making and prioritisation.

Gravelroad provides robust and proven methodologies to produce information that is decision-ready for capital prioritisation, investment analysis, feasibility analysis, capacity planning, cost optimisation and product pricing.

Our Gravelroad consultants have all worked in senior management positions across the value chain and are highly qualified. Our focus is on working with clients to allow them to better understand their business in simple terms by providing important KPI’s such as unit product cost and unused capacity costs in their business. These economic KPI’s are often aligned far more closely with shareholder value creation than their equivalent cost accounting counterparts.

Gravelroad uses bottom-up engineering and operational economic frameworks that allow an investor to understand in detail where the source of wealth (and other benefits) derives from in these networks and how best to optimise their deployment for long term returns, whether financial, social or economic.

Gravelroad provides economic analysis for:

  • Capital prioritisation
  • Customer segmentation
  • Marketing investment
  • Cost-to-serve modelling
  • Supply risk measurement
  • Distribution optimisation
  • Network restructuring
  • Network valuation
  • Regulatory compliance, and
  • Product pricing in utility environments.

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