Food-Grade and Industrial Enzyme Production Company
Challenge
Rapid expansion across sales organization, product lines, and manufacturing capacity
Limited visibility into product-level profitability and cost drivers
Need to align sales incentives with business performance goals
Strategic Objectives
š¢ 1. Enhance Profitability Analysis: Gain a clear understanding of margins across product lines and customer segments
š¢ 2. Optimize Operational Efficiency: Identify and eliminate cost inefficiencies tied to growth initiatives
š¢ 3. Align Sales Commissions with Business Strategy: Ensure incentive structures promote high-margin, strategic sales
š¢ 4. Leverage Data Analytics and BI: Use business intelligence to focus efforts on the most profitable customers and products
Outcome Focus
ā Greater clarity on cost structures and margin performance
ā Improved decision-making through data-driven insights
ā Strategic alignment between sales efforts and profitability goals
Solution
ā Process Analysis: Deployed Business Transformation Playbook, conducted Gemba Walks across core processes, and mapped relationships between processes and systems
ā Data Integration & Transformation: Gained access to Microsoft Dynamics GP ERP, Microsoft CRM, and QC-Lab Systems, mapped database structures, and created time-driven and cost drivers
ā Custom TDABC System Development: Designed a custom Time-Driven Activity-Based Costing System, allocated Chart of Accounts P&L transactions to cost objects, and configured Microsoft SQL Server Analysis Services
ā Business Intelligence Implementation: Designed a Multidimensional Cube for the TDABC model, created profitability models, and conducted 'Whale Curve' analysis
Results
Sales Optimization: Identified opportunities to restructure sales commission models to drive profitable growth
Product Profitability: Pinpointed unprofitable customer/product combinations for remediation
Operational Efficiency: Discovered and addressed Production and Quality Lab inefficiencies
Strategic Focus: Enabled client to take immediate steps to improve product profitability
Cost Reduction: Identified and implemented specific operational cost reduction initiatives
Data-Driven Decisions: Provided management with actionable business intelligence for strategic planning
Technologies
ā Microsoft Dynamics Great Plains (GP) ERP Software
ā Microsoft CRM
ā Microsoft SQL Server Analysis Services (SSAS) Online Analytical Processing (OLAP), Multidimensional Cube ā design