Costing

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Costing

You may have noticed that :

  • 20% of your clients generate 80% of your sales
  • 80% of your clients generate 20% of your sales

But did you know that:

  • 20% of your clients generate 225% of your profits?
  • 70% of your clients generate 0% of your profits?
  • 10% of your clients generate 125% of your losses?

These results are typical of the costing analyses we have conducted.

Our experts are able to calculate the costing:

By product

By service

By client

By distribution channel

Based on any parameter significant for your company

Assess the impact of your business decisions

Change a supplier

Opt for outsourcing

Select equipment

Create a shared services centre

Build a new plant

Etc.

Gain an in-depth understanding of the financial impact of each of your alternatives. Control and minimize the risk related to your performance.

Partner with us to reduce costs without interfering with your operations or sources of income.

Assess the impact of your business decisions

Change a supplier

Opt for outsourcing

Select equipment

Create a shared services centre

Build a new plant

Etc.

Gain an in-depth understanding of the financial impact of each of your alternatives. Control and minimize the risk related to your performance.

Partner with us to reduce costs without interfering with your operations or sources of income.

Typical project steps

01
Conduct a preliminary analysis

  • Define needs
  • Visit the site
  • Train stakeholders
  • Conduct interviews with the management team
  • Collect and analyze information
  • Select technological tools
  • Develop and validate conceptual design
02
Deploy the model

  • Develop a costing model
  • Validate the model
  • Document the working model
  • Train the users
03
Analyze the results and/or impacts of the scenarios

Past projects

Objectives

 Specific challenges

Outcomes

Assess the production cost of a product in development based on different manufacturing scenarios.

 Very low target cost per unit.

Eliminated the scenarios that didn’t correspond to the target cost per unit.

Measure profitability by clients, product and distribution channel.

Identify the cost drivers.

 

Retained the most profitable clients using a profitability index.

Develop a client profitability analysis tool based on risk profile.

 Convince management that increasing the risk profile of certain clients would have a negligible impact on overall risk.

Increased the margin by 200 basis points without affecting overall risk.

 

Contact us to find out
how we can help you.

Contact us to find out how we can help you.