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