Granular Profitability Analysis at Detailed SKU Level Using Complex Allocation Models and Rules

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Business Issues

  • Painful Excel-based consolidation, budgeting, and reporting models
  • Labor-intensive and very cumbersome data collection and report development process

Longview Software and Service Solutions

Planning

  • Annual budgets and quarterly and weekly forecasts
  • Driver-based planning using operational KPIs (bottom-up) to measure true performance
  • Implemented multiple global version controls to help identify and report forecasting changes throughout the year
  • Mill level what-if scenario planning to measure the impact of capital projects on plan
  • Profitability Modeling and Margin Analysis by Product at the SKU level

Consolidation

  • Journal entries
  • Intercompany eliminations
  • Automation of EBITDA calculation

Solution/Benefits

  • Reduced closing time by nine days, headcount accordingly and overall risk
  • Eliminated 15 working days for Forecast Actualization, which is now processed in one hour by one person globally and at an increased frequency; “at the push of a button”
  • Increased management confidence in accuracy of reports and overall auditability
  • Streamlined report development, testing, distribution, and timeliness
  • Automation of EBITDA, across Consolidation, Planning, and Forecasting