Consumer Products Solutions

Key Industry Drivers and Trends

• Competition pressure is growing in the consumer products sector
• Customers are demanding lower prices but require more services
• Operational personnel don’t understand the cost numbers
• Better pricing decisions are difficult without cost-to-serve allocations
• The cost of labor, materials, inventory and capital investments squeeze bottom lines
• Differentiation is more difficult than ever in the global economy
• Pressure to deliver value as well as strong financial results is mandatory
• Management analysis is moving from standard costing to actual costing
• Lean manufacturing requires more metrics than numbers from the financial system

Initiatives

• Customer Profitability
• Product Profitability
• SKU Rationalization
• Vendor Negotiation
• Pricing
• Profit-Based Growth Strategies
• Supply Chain Analysis
• Process Improvement
• Rationalize Machinery and Facilities
• Resource Capacity & Utilization
• Lean Manufacturing and Accounting

Acorn Deliverables

• Customer analysis, top-bottom profitability
• Product analysis, top-bottom profitability, category analysis
• SKU rationalization analysis
• Supply chain cost-to-serve analysis
• Sales force analysis, territory profitability
• Order breakeven
• Capacity analysis
• Activity (process) cost analysis
• Lean accounting reporting

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Time-Driven ABC not only gave us very valuable insights into the drivers behind our logistic activities, it also helped us to fully evaluate and quantify the services rendered to our customers, and to put these services in relationship to our commercial goals. As a result, Time-Driven ABC served as an important agenda item for discussions on strategies, strength, weaknesses, and performances.
Pascal Platteau Operating Controller, Coca Cola Enterprises Belgium

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Quick Links: Growing Revenues Profitably I Reducing Costs I Improving Operational Efficiencies I Retail I Consumer Products
Manufacturing I Distribution and Logistics I Customer profitability I Product profitability I Vendor profitability