This company is pioneer in manufacturing & trading of Electro-mechanical components such as Switches, Connectors, Power entry components, Filters, Power cords, Power distribution units (PDU’s) and allied components since over 40 years and has over more than 3000 products in its portfolio.
Issues:
Due to a large product portfolio, the company felt a need to have a methodology of accurate costing. They believed that they were making losses in profits. Moreover, they were unable to accurately price new products and beat the competition.
Methodology:
With our Diagnostic DS, we were able to define their business into 8 distinct cost verticals. Coupled with Analytic DS, they were able to
• Determine & monitor accurate break even points
• Profit Plan
• Determine Pricing
• Competitive bidding
• Budget
• Forecast
With our Enterprise Enhancement Support, we developed a 3x3 strategic pricing grid for better sustainability in decision making. This grid visually projected the current product position and aspired product position, thereby assisting contribution and volume decisions.
Impact:
• 4.51% increase in their GP ratio.
• 6.18% increase in their EBT.
This company has revolutionized the liquid packaging concept in India. They have established state of the art processes that are completely integrated and conform to the highest international standards.
Issues:
Huge competition from unorganised sector created impediments in growth. Pricing and cost analysis was critical for its profitable growth. The management felt there were losses in profits and wanted to have a complete understanding of the business model, costs & pricing structures.
Methodology:
Our Diagnostic DS helped the management determine appropriate cost model, and our Analytic DS gave them a methodology for competitive pricing by providing a pricing matrix for continuous monitoring.
Impact:
• Diagnostic & Analytic DS enabled leaders design a better business model mix, which showed a potential saving of 10% - 12% of sales per year.
• The pricing policy helped them fight the small players and yet make a mark at the premium end. They were able to gain better market share.
This BSE listed company is a leading manufacturer and exporter of kitchen sinks and accessories. The company is into manufacturing, trading and export business.
Issues:
The company wanted to grow in related verticals and gain market leadership position. Due to a large product portfolio and huge dealer network, they need to analyse their real sales and design timely and impactful selling strategies.
It also wanted have a better management reporting system to assess true business performance.
Methodology:
With our FinPro DS, we were able to automate their dealer provisioning system and define accurate sales realisations and a real-time picture of their dealer performance. Moreover, with our Diagnostic DS, their management leaders were able to get quick, accurate and error free MIS; for understanding the real sales and margins of the business for better decision making for profits.
Impact:
• Better dealer performance
• Increased market share
• Increased market value
This Conglomerate is a professionally run; family owned and managed business with over six decades of steadfast growth. The group is technologically robust with diverse manufacturing interests.
Issues:
This group had multiple isolated softwares leading to duplication of databases and additional work. The management wanted to exploit internal data for better decisions on profitability.
Methodology:
We understand business models. Our Diagnostic DS gave them quick views on their performances. Our FinPro aided them with error free consolidations and group level reportings. With Analytic DS, they were able to identify profit pools where they could derive pricing upsides.
Impact:
• Improved profitability
• Automated Financial and Audit related consolidations
• Fully integrated and decision supporting MIS
This company is into manufacturing steel products with a huge capacity, varied processes and voluminous product range.
Issues:
The management felt that detailed costing could help it identify areas of efficiency improvement. They also wanted a deeper understanding of the process costs and product costs.
Methodology:
With our Diagnostic DS, we designed an Activity Oriented Costing, which gave the management a deep insight on the process level costs and profits. The dashboards gave the management a quick view on process improvements and efficiencies.
Impact:
• Improved costs & profitability
• Increased visibility around process optimisations and efficiencies
• Fully integrated and decision supporting MIS