Learn about the challenges CPG companies face with understanding the costs to manufacture and sell products.

1. Cost-to-Serve Analytics with ImpactECS
Consumer Packaged Goods

2. Do you know the
cost to serve your
customers?
Effective cost-to-serve programs
account for all activities at each step of
the supply chain involved in getting a
specific product to a unique customer.
“Profitability analysis is used to address
many strategic business challenges with
67 percent leveraging it for overall
supply chain optimization.”
Source: “Cost-to-Serve Methodologies: Analysis You Can’t Afford to Ignore”, Accenture

3. Consumer Packaged Goods (CPG) companies face a wide
range of challenges to grow profits
Volatile raw
material costs
Rising trade
promotion spending
Increasing distribution and
transportation costs
Raw material and commodity
prices can shift due to market
demand, supplier changes,
governmental policies, and other
unforeseen circumstances.
The second highest cost for CPG
companies beyond COGS, trade
promotion spending is increasing
due to competition from private
label brands and price
consciousness of consumers.
With retailers growing clout in
distribution negotiations, forcing
CPG companies to hold more
inventory and provide more
deliveries which ultimately
increases costs.
Main issues for decreasing margins of many CPG companies
Source: “Cost-to-Serve Analysis”, TATA Consultancy Services

4. True profitability
requires a detailed
understanding of
costs.
Effective cost-to-serve programs uncover the true profitability of
every customer and product by providing detailed Profit & Loss
statements for EVERY business dimension.

5. Handling Costs Order Picking Costs Labor Costs Raw Material Costs
Transportation Costs Sales Costs Miscellaneous Costs
A wide range of costs are needed to
calculate accurate Cost-to-Serve results.

6. CPG companies are
still using outdated
tools to calculate
costs and profits.
79%
21%
17% 17%
4% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Spreadsheet
model with
manual and/or
automatic data
feeds
Network and/or
inventory
modeling
software
ERP software
module
In-house
developed
database
application with BI
Don't know/Not
applicable
Other
Nearly 80% of CPG companies
are using spreadsheets to build
and maintain some or all of their
cost-to-serve models.
Source: “Cost-to-Serve Methodologies: Analysis You Can’t Afford to Ignore”, Accenture

7. Spreadsheet
analytics has
limitations.
Challenges with spreadsheets include
• Integrity of data due to manual interactions and
inconsistent assumptions
• Data not easily shared across the organization
• Multiple versions of the truth exist
• Not scalable for large data sets
• Auditing and security not inherent and difficult to enforce
35% of spreadsheet users admit they are
fully aware that the spreadsheets used to
manage their most important business
processes have errors.
Source: Deloitte

8. ImpactECS offers end-to-end visibility
into your company’s costs and profits
Centralized cost and profitability
platform configurable to handle
unique business rules
Harmonized data to allow for
true analysis and comparisons
Scalable architecture to handle
large data sets and calculate an
unlimited number of scenarios
High-performance calculation
engine to deliver answers quickly
and more accurately than
spreadsheets or offline systems

9. Benefits of ImpactECS:
● Centralized and highly configurable cost and profitability platform
● Modeling and scenario management capabilities owned by
business lines, not IT
● Tightly integrated with existing infrastructure
● Unlimited cost detail for products, activities and routings
● Integrated sandbox environment
● Controlled and secure access with full auditing capabilities
ImpactECS is a robust cost and
profitability platform designed to
handle cost-to-serve analytics.

10. ImpactECS
offers visibility
into costs and
profits at every
level of detail.
ImpactECS gives you the
ability to view high level
profitability, detailed
cost-to-serve, and
granular product cost
results in one system.
Natural cost detail calculated for every
raw material, WIP, or finished good.
Specific costs for each
activity required to get
goods to customers.
Dashboards provide visual
representation and drill-
down capabilities.

11. Make Better Business
Decisions Starting Today
Email
sales@3csoftware.com
Call
770.956.7744
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