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Customer Story: US Based Office Supply Distributor

This distribution company launched as a merger of two entities that created a massive organization with over 170 locations across the US. The packaging, publishing, and hygiene product provider needed to retire legacy costing and profitability systems across the newly merged entities and standardize their view of costs.

The ImpactECS platform enabled an enterprise view of profitability that offered detailed, invoice-line level cost insights by vendor, location, channel and customer. By establishing a standard, repeatable process with company-determined rules and methodologies, the company was able to realize $1.8 million in profits and $3.3 million in savings in Year 1.

Company Category
US-Based Wholesale Office Supply Distributor

Annual Revenue
$8.3 Billion

Year Founded
2014

Headquarters
Atlanta, GA

Technology
Oracle (ERP)

The project created a tangible cost-to-serve view of their organization where they could improve profits through SKU, supplier and category optimization as well as reducing operating expenses by focusing on average cost per delivery, average variable warehouse cost per line and average customer support costs per line.

Benefits of ImpactECS

  • Establish a hybrid standard cost and allocation process that calculates the full end-to-end cost and net profitability at the invoice line level
  • Visibility into company-wide cost and profitability results for all products, customers, vendors, activities, and organizations
  • Identify the key drivers of costs and profits to drive financial planning and direct lean initiative decisions
  • Serve as a platform for predictive modeling, scorecards, forecasting, budgeting and other performance indicators
  • Inform decisions on compensation plans for sales management and customer support groups, terms and incentives, and pricing strategy

The Value of Costing in Changing Business Environments
Recent events have taught finance and costing leaders that unpredictability is the new norm—making effective cost planning a necessity. Cost data impacts organizational decisions from quoting new business, selecting vendors and suppliers, planning production, and servicing customers. The most innovative teams have enabled costing models that generate planned, forecasted, historical, and simulated cost data to drive commercial and operational decisions.

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