Financial systems expert Vantage Performance Solutions is to work with Stabburet, part of the Norwegian consumer goods giant Orkla, to gain visibility of the associated costs and profitability of its product lines and remove time consuming manual accounting processes.
Stabburet, which has supplied leading food brands across Norway since it was established in 1943, has disparate incumbent accounting database systems across the various business areas. The new SAP Profitability and Cost Management (PCM) system will allow the firm to view in-depth financial information related to the associated costs of each product line such as logistics, customer service, sales and IT infrastructure, meaning they can see the ‘true’ profitability and cost of its products.
Based on the information Stabburet will be able to up-scale profitable lines and remove or review those which are costing the business money.
Steve Benham, Vantage profitability and cost management consulting manager explains,“Large businesses such as Stabburet with extensive product lines, processes and locations normally have a good handle on their gross margin, but struggle to understand product and customer contribution. They are often hampered by out-dated systems and costing. After extensive evaluation of Stabburet’s accounting processes we found that, although the business had a system for cost allocation, it was spending too much valuable time manipulating data before and after data input. Furthermore, the allocation methods were not to the standards that Stabburet had set.
“SAP PCM will enable the firm to gain a better handle on profitability and cut wasteful accounting processes, enabling it to focus on growing its core business and operating efficiently.”
Lars Herman Lokkeberg, financial controller at Stabburet continues; “We selected Vantage to manage our SAP PCM implementation and consultation as we felt they were a safe pair of hands with a real understanding of our business needs. At Stabburet we always strive for continuous improvement and we have been looking for a new system to solve our allocation processes for a long time. We are very pleased with the benefits and insight this new system will bring.”
Vantage Performance Solutions has worked with leading companies across the financial, manufacturing, utilities, transport and energy sectors to help them design and streamline their financial planning, budgeting and forecasting to work more effectively and simply.