Project Overview – Summit Electric Supply

About Summit Electric Supply:

US-Based Wholesale Electrical Equipment Distributor
Annual Revenue: $425 Million
Year Founded: 1977
Headquarters: Albuquerque, NM
ERP: Oracle
ImpactECS customer since 2017

Before ImpactECS:

Existing Time Driven Activity-Based Costing Process provided limited insights into company profitability performance

• Unable to view costs incurred beyond net sales (purchase price) to determine true contribution margins
• Spreadsheets used to evaluate basic profit center performance, but lacked detailed insights to guide
customer and product strategies

How Summit Electric Supply uses ImpactECS:

Build and validate

• Calculate activity cost details at the sub-activity level (activity + location)
• Assign expenses using a rules-based allocation method at the activity level (warehouse, counter services, delivery, customer service, sales, credit)
• Determine P&L by customer, vendor, product and other relevant business dimensions
• Calculate operational costs, metrics, and benchmarks for all profit center operations and corporate services

Evaluate

• Identify the key drivers of costs and profits to direct lean initiative decisions
• Pinpoint the top and bottom performing customers, orders, products, and channels

Analyze

• Investigate root causes of high-cost activities and drivers, key metrics and KPIs
• Run scenarios comparing historical data and/or ad hoc results to predict outcomes and analyze trends

Action

• Develop action plans by customer or product to both reduce costs and improve profitability
• Create incentive programs to encourage specific behaviors that can increase margins
• Track progress and outcomes of incentive programs to evaluate performance and leverage insights

 

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