With a limited costing process in place, this US Based steel company was unable to calculate accurate and timely product cost answers at either the product or location level. Limitations with their ERP costing module, led the team to a process heavily burdened with spreadsheets. With constantly shifting market conditions, the lack of visibility into actual cost performance and quick access to cost analytics impeded their ability to evaluate profits for both products and customers.
By leveraging ImpactECS, the finance team established an end-to-end costing and profitability process that allowed them to calculate standard and actual costs, allocate direct and indirect
overhead spending at the product level, value inventories and generate forecasts for all locations using varied assumptions on price, volume, and sales mix.