Don’t ask spreadsheets or your ERP to do what they can’t do
Obtain reliable and actionable information on costs of processes, product, customer and sales channel
A costing system for managers
Cost accounting does not serve managers and internal departments. It provides no relevant performance measurement or product cost information. On the other hand, strategic cost management creates a framework for managers to examine the drivers (or causes) of costs to improve decision-making and corporate profitability. With Sixtina Cost & Profitability:
Expand the role of the Financial department as a strategic advisor.
Implement a strategic cost management system.
Improve decision-making and corporate profitability.
Accurate and timely cost control
Operating costs are reported too late and are too aggregated to benefit production supervisors. Cost center managers need an operational control system that can specifically report to them and based on the actual cycle of the process being measured. Use Sixtina Cost & Profitability to:
Generate reports based on the unit’s actual consumption of resources.
Include nonfinancial data that is, many times, more relevant to operational control.
Understand which costs are fixed and which change with short-term variations in activity.
Make processes more efficient by identifying activities that don’t add value.
Complete product costing
Standard costing and product cost estimates focus on the least important cost component —direct labor— and ignore expenses involved in designing, marketing, distributing, and servicing. Seriously distorted product costs can lead managers to choose a losing competitive strategy. With Sixtina Cost & Profitability you will be able to:
Completely allocate all support departments costs.
Measure individual product and service profitability.
Get insights to influence new product design or introduction.
Set the correct pricing strategy based on accurate costing.
Cost-to-Serve
Customer-related expenses such as selling, distribution, customer service, and marketing expenses can very often turn profits into losses. With accounting’s traditional product gross profit margin reporting, managers can’t understand how each customer contributes to profits. Use Sixtina Cost & Profitability to:
Obtain a P&L statement for each customer.
Analyze Customer Lifetime Value.
Support the Marketing and Sales departments helping them target more profitable customers.
Get the necessary information to decide which customers to target, retain, grow, or drop.
Simulations
In an increasingly volatile environment, companies need to understand how change will impact their cost structure and financial results. Use Sixtina Cost & Profitability to:
Improve reliability of forecasting and budgeting.
Model how initiatives will affect financial performance before they are implemented.
Accurately predict how changes in volume will impact cost and resource requirements.
Fast and complex calculations
Get faster results and minimize error.
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Multi-dimensional analysis – OLAP
Combine product, customer, channel and process measurements.
Multi-level cost allocations
Allocate costs as needed to truly represent cause-and-effect relationships.
Flexible modeling
Adapting to any type of industry and modeling techniques.
Automated updating
Connecting to any type of database and scheduling data import to minimize periodical updating.
Inventory valuation
Materials and stock inventory valuation for production companies.
Capacity management
Used and idle capacity modeling and analysis.
Talk to us
If the management tools you are currently using aren’t providing you with the analytical capabilities you need to efficiently manage your organization or, even worse, you can’t fully trust the information you get out of them, you are among a surprisingly big number of companies not taking advantage of what modern performance management software can achieve.
We have over two decades of experience helping managers obtain the data they need to be able to make strategic decisions that will directly impact in efficiency, profitability and enterprise value.
Get in touch with us and we will be more than happy to discuss your current needs and how we can help you address them. Our consultants will interiorize with your specific requirements, advise based on industry knowledge, go over our solutions, and provide a project plan and price quote.
