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Costing
Companies that leverage cost analytics to focus on cost reduction can experience reductions of 3%–5%, while those that focus on profitable growth and revenue initiatives can achieve 5%–15% improvements. For example, a $4 billion financial services firm can expect to add $600 million in annual profit enhancement by using this approach.
Unfortunately, costing data is frequently isolated in individual applications, such as procurement, finance, and sales. It can be too difficult or expensive to pull the needed information into a meaningful holistic view. Cost analysis decisions may rest on high-level or aggregated data of questionable accuracy, while the real value rests in the ability to identify, highlight, and examine each cost element piece by piece.
Acorn Systems’ advanced methodology takes activity-based costing (ABC) to the next level of accuracy and sustainability. Acorn’s Time-Driven Activity-Based Costing (TDABC) approach provides profitability insight that breaks through the traditional barriers to provide accurate allocation and unit cost, cost-to-serve analysis and supply chain costing.
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