Context :

A consumer goods company was experiencing uneven profitability across its product range without understanding the true cost drivers. Traditional costing methods masked process inefficiencies.

Approach :

We implemented the ABC method by mapping key activities in the production chain and allocating costs to products based on their resource consumption. The data was integrated into the existing ERP via a custom interface, and workshops were held to align the finance and operations teams on the new indicators.

Results :

ABC analysis revealed that 20% of products generated 80% of unprofitable costs, leading to a redesign of the range. The company reduced its production costs by 15% in six months and improved its margins by 10% by optimizing processes identified as inefficient.