LOOKING FOR SOLUTIONS FOR YOUR INDUSTRY?
Flexible prices and discounts, sales promotions growing demand, prizes and marketing contributions coming from distribution channels, impact of increase in raw material costs; these are the main factors which have consequences on the profitability of manufacturers of consumer and durable goods.
Given this situation, it is vital to keep constant and progressive governance and visibility of:
These are only some of the features of our corporate control solutions.
These solutions aim at covering the main functional areas and are complementary to the Budget and Forecast module that favours the management of the predictive process and its control related to individual areas (Business profitability, Profit and Loss Account, Product Cost, Human Resources). It also allows the integration of different budgets (e.g. sustaining the production budget with sales results and giving feedback on new outcomes). The same module allows simulation models set-up and arranged (what-if, goal seeking, etc.) useful for making decisions on company policies and on how to optimise the most critical variables.
These specialised industry solutions are parametrised and ready-to-use applications regarding data models, reports, analysis tools which are already available at the start of the process and which are connected to a single data repository which main functions are flows quadrature and coherence and “rules” maintenance (driver settings, reallocation rules, profit and loss accounts formats set up performed using different reclassifications, etc.). These solutions bring together the needs detected thanks to our industry experience, to customers’ demands and to background operational practices.
The determination of the industrial product cost (Service) and its governance is the result of an analytical management industry control also related to all those enterprises with high indirect costs.
The main objective of the Industrial Product Cost is monitoring and looking after product lines thanks to a product cost statement (both Direct and Full Costing) down to each feature; determining reference and list prices and increasing the value of current stock are very important features based on the product cost calculation.
The main features of the production costs control software are:
• Raw and subsidiary materials cost development and also bills of materials including production order costs referring to standard and full costs
• Labour costs development (internal and external, rework, etc.) using Processing cycles or manufacturing times, promoted at standard costs and settled with full costs
• Direct or Indirect costs take over based on expenditure for the corporate accounting system production cost centres, with the opportunity to input annual or monthly reports and budgetary costs directly in the E3 system
• Reallocate industry indirect costs on the basis of cost drivers as a result of hours worked, machine hours and stores movements and payments, energy consumption or ad hoc consumption
The key features of the solution are:
1. Determining total cost of production and also cost by department or by process using ABC logics (Activity Based Costing) to the desired level;
2. Analysing variances of components of the cost of product;
3. Generating costs to calculate the selling price and the inventory.
To sum up, we can say that technical and consumption data, costs and the handling process included in the management system (such as bills of materials, processing cycles, goods movements, analytical accounts) which are taken to the repository and are subject to specific processes and logics determined by the controller who will be determining pricing levels and reallocation rules producing the industrial cost and profit and loss account profiles.
Our solution is addressed at those companies willing to manage their sales profitability in a coherent and timely manner (channel, point of sale, department, etc.).
Moreover, at present, it is essential to assess the effectiveness of promotional activities and customers’ clustering and analysis.
Sales profitability governance in relation to product categories, to stores and distribution centres through the creation of Point of Sales and Department, Channel and Company profit and loss accounts based on accounting data, goods and manual integrations. Assortments and promotional policies active management.
• Sales and commercial margins analysis
• Product category performance
• Assortment clustering analysis
• Shrinkage management check
• Returned and expired goods analysis
• Promotional effectiveness analysis
• Sales network
• Deviations analysis
• Fidelity analysis
The profit and loss account for commercial and sales profitability allows both an aggregated and a very detailed analysis.
Our solution is addressed to business directors who can quickly access information regarding the business performance and identify a final competitive advantage. It basically provides a full analysis and management control system:
Balance sheets, profit and loss accounts of the company and of a potential third party (Business Unit, Order, Result area, etc.), cash flows and relevant economic, financial and structural factor analysis,providing a dynamic and prompt overview of final and provisional figures.
The main advantages are improved profit management and cost trends, analysing each task from different perspectives and implementing management control activities. Thanks to the application you can access either a final or management overview, integrating accounting and non-accounting data, and also implementing and performing an organisation of cost structures through a reallocation of rules. In short, this solution enables all corporate performance indicators governance to identify its main trends and analyse them from different perspectives (business area, corporate contribution margin)
ACCOUNTING AND MANAGEMENT DATA
• Accounting data integration containing summarised information coming from other flows: e.g. purchase invoices, attendance and payroll processing
• Accounting database for management purposes: cash and competence criteria
• Database update for forward-planning analysis: data management refresh at the beginning of each month/week
• Management data navigation through the management of reclassification sub-counts criteria
• Data projection and creation of preliminary forecast
• Accounts alignment (both final and management) to cost centre based approach: indirect cost reallocation to CDC
• Reallocation criteria selection (tables/hierarchical, automatic/manual, total/partial determination criteria)
• Opportunity to perform simulations and manual adjustments relating to suggested distribution criteria
With the aim of supporting businesses planning and management control, the E³ suite provides budgeting and forecasting solutions for individual areas of the business or for the coordination of the different areas concerning planning activities.
This budgeting and forecasting solution allows defining Corporate or Business Unit or strategic business approaches hypotheses, to integrate and consolidate the data and compare it with historical data or other relevant information. You can decide to adopt budgeting top-down approaches (from the general objectives to the operational ones), bottom-up or mixed. It’s a product tailored to all those businesses that consider proactivity and operational control a competitive advantage in order to achieve a complete software system and management control.
Using a straightforward and flexible tool to plan strategies and verify the company’s results, thanks to shared certified and centralised data.
Easily plan targets defining hypotheses based on historical data or building up projections, by integrating different budgeting information (e.g. production budgeting).
Allocate budget to managers and easily integrate specific hypotheses adopting Office automation familiar tools.
Monitor the activity verifying budgetary deviations and project final budgetary figures to simulate the end of the financial year.
• Company, Multicompany, Departments
• Functional areas (Commercial, Sales, Production, Profit and Loss Account, etc.)
• Types: Business, financial, operational
• Methods: Top-down, Bottom-up, mixed
• Working procedure: Workflow definition and scheduling
• Final balance: Non-accounting data, Full costing data, etc.
• Affiliations: Organisational structures, product families, etc.
• Historical data reclassification and update
• Cost drivers distribution and reallocation
• Different time lines: Every month, every season, etc.
RECYCLING AND EDITIONS:
• Building up different hypotheses and scenarios
• Forecasting/Current budget and revisions
• Deviations analysis
INTERFACING WITH INFORMATIVE SYSTEM:
• Accounting and commercial data input/output, etc.
• Acquisition through RDBMS/Import/Export file Xls, Txt, etc.
Human Resources are vital for each company that wishes to grow and maintain a competitive advantage. The solution is focused on costs control and HR productivity measuring their performance and impact on production costs (phases, cycles, activities).
Carry out productivity and efficiency costs analysis, quickly evaluate structures and procedural re-organisation simulations through budget indicators.
The main advantages refer to:
• Improved workforce balancing and human resources management
• Workforce organisation according to their needs
• Limiting overtime
• Limiting the costs of leave which have not been taken
• Personal sales force incentives
• Workforce cost based on their skills
• Hourly costs and per capita workforce
• CDC/department allocation according to attendance level
• Departments/Tasks costs, etc.
• Measuring Productivity: Items, hourly turnover, FTE
• Overtime measurement and control, Absences, Annual Leave entitlement for remainder, etc.
• Possible extensions: Shift management