Automate standard costing and optimize pricing
Our client wants to redefine its standard costs and pricing structure. The objective is to implement more reliable and simpler models to be more accurate and facilitate audits. We have worked with finance and logistics teams, leveraging several years of historical data, like invoices, orders, pricing grids, margin targets, accounting data and product data.
The financial exposure of setting a new standard costs and pricing models also needed to be estimated and balanced.
Company profile : 1.1 b€ revenues – 30.000 sku – 20 countries
- Develop a data analysis, clustering and detailed correlation approach on supplier invoice data
- Model impact by country and by sku to evaluate the commercial risks of the new standards
- Run risk analysis on the Revenue, EBIDTA and Net Income.
- Develop an industrialized data pipeline for cleaning, correlation and risk analysis to implement this model in the finance monthly and quarterly routines
- Simplified standard costs and standard margins defined after 2 months
- Costing model based on 4 criteria vs 45 in the past with no loss of accuracy
- New costs and margin model being rolled-out in 3 countries, full roll out planned over one year
- Automated cost modeling workflow documented and auditable