Meet another one of MyABCM’s great customers in Latin America! Arca Continental is a company that operates in the production, distribution, and sale of beverages under the brands owned by The Coca-Cola Company, as well as the snacks brand Bokados in Mexico, Inalecsa in Ecuador and Wise and Deep River in the United States.
The corporation has more than 96 years of history and is part of the largest Coca-Cola bottlers in the world. With this, Arca Continental supplies the brand’s products to more than 125 million people in several Latin American countries.
The company’s challenges
In charge of manufacturing several brands and integrated with several other divisions, Arca Continental deals with a large and complex operation. Thus, the company needed a solution that could keep up with its production pace and aggregate information from multiple sources into a single platform.
The choice for the MyABCM solution was motivated by the system’s ability to handle a large volume of data and provide a detailed view of cost sources and profitability indexes for each brand in the company’s portfolio. Another determining factor was the smooth integration with ERP and other systems already in use at the organization, and the ability to perform multidimensional modeling and visualize how resources are actually consumed in day-to-day operations
Therefore, the investment in the system will support the decision-making process and create the basis for an assertive and profitable management.
Find out how MyABCM solutions can help your company too!
São Paulo — July 14, 2022 — Abcosting Produtos e Servicos LTDA, doing business as MyABCM, today announced that its MyABCM – Cost Management and Profitability solution is now available on SAP® Store, the online marketplace for SAP and partner offerings. Integrated with SAP HANA®, MyABCM delivers state-of-the-art technology to manage cost and profitability.
“As our customers mature in their deep experience of cost and profitability, the importance of integrating with SAP cannot be overstated,” said Andre Sanseverino, Global VP Sales and Marketing with MyABCM. “Together with MyABCM’s expertise and market leadership, businesses that use SAP technology will now have access to a complete modern package for cost and profitability modeling and analysis, providing customers with strategic decision-making tools.”
MyABCM has helped transform how companies experience cost and profitability management by providing powerful real-time tools that impact the day-to-day work of over 1,000 companies in more than 50 countries. Customers also have access to sophisticated decision-making tools, what-if simulations, and more. The solution is available on-premise or in the cloud in just a few clicks. Apply for a free trial on SAP Store.
The integrated solution enables customers to:
Understand the profitability of products and services
Increase profitability with powerful analysis tools
Improve cost drivers and assignments that include indirect expenses
Perform sophisticated what-if simulations and planning analysis
Provide a management solution integrated with SAP
SAP Store, found at store.sap.com, delivers a simplified and connected digital customer experience for finding, trying, buying, and renewing more than 2,000 solutions from SAP and its partners. There, customers can find the SAP solutions and SAP-validated solutions they need to grow their business. And for each purchase made through SAP Store, SAP will plant a tree. MyABCM is a partner in the SAP® PartnerEdge® program. The SAP PartnerEdge program provides the enablement tools, benefits, and support to facilitate building high-quality, disruptive applications focused on specific business needs – quickly and cost-effectively.
ABCosting Produtos e Servicos LTDA, doing business as MyABCM, is a global organization that offers solutions for controlling costs and optimizing profits. Our main mission is to help companies get a detailed and deep understanding of their costs and make better decisions based on reliable information. The company offers a full range of cost and profitability solutions ranging from prototypes and pilot installations to integrated, enterprise, and global-wide information systems. Visit www.myabcm.com for more information.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies.
Corporación Maresa, an exponent in the Latin American automotive industry, relies on MyABCM solutions for its cost and profitability management.
The holding company, owner of a great reputation in Ecuador, currently owns 7 of the largest automotive brands in the country: RAM, Fiat, Jeep, Chery, Mazda, Dodge, and Dongfeng. Moreover, in its more than 42 years of history, the organization has become a reference when it comes to supporting social and environmental causes.
It goes without saying that managing a business of these dimensions is highly complex. That is why Corporación Maresa came to us with great challenges.
The organization, which recently acquired the operations of Cinascar in Ecuador and Colombia – adding those brands to its portfolio, has become one of the largest companies in the automotive market. With this expansion, the need for a solution capable of comprehensively meeting its demands grew.
Managing the distribution of so many major brands and hiring hundreds of employees in its operations, the company felt the urgency for a tool to simplify the creation and implementation of financial modeling, as well as to perform cost and profitability analysis, from the most basic to the most advanced. All this in a system that could be quickly installed and that could create a productive and intelligent workflow with other software already in use.
The selected solution to support the company’s growth
To improve management flexibility and efficiency, Corporación Maresa chose to implement MyABCM. The solution was also chosen for allowing integration with any corporate system and for relying on Data Transformation Studio, a tool that, in addition to creating the connection with various ERPs, ensures the transformation, grouping, and classification of the source data on a visual platform, as well as its subsequent integration with the implemented model.
It goes without saying that Brazil is going through a moment of crisis, much as a result of political factors and because of Covid-19. But in fact, a survey by Exame magazine shows that even before the pandemic the situation of national companies was already very complicated.
The study, encompassing the 500 largest companies in the country, found that in the last 10 years their average net margin was less than 3%. To be more precise, the measured value was 2.54%.
It is worth remembering that, in theory, we are talking about the most professionalized companies, with high volumes (and, therefore, bargaining power in their purchases), greater visibility and even greater financial availability for marketing and sales actions. And again, we are talking about before the pandemic. Imagine these numbers now!
But this is not a national phenomenon. Organizations’ margins have historically been squeezed around the world. Some contributing factors include government pressure, rising taxes, new competitors, increasingly demanding customers, issues now such as ESG (environmental, social, and corporate governance), and even the pandemic and its consequences such as shortages of skilled labor and supply chain problems.
Therefore, reducing costs and expenses is the absolute priority for companies. And when we talk about reducing costs, we immediately think of laying off employees.
What is the difference between costs and expenses?
Before we begin, let’s clearly understand what the differences between costs and expenses are. Then we will discuss what it is and why we should seek to reduce costs.
What is cost?
Cost is any amount applied in the production of a product (in the case of manufacturing companies) or in the provision of services (for service organizations). Some examples of costs are labor, raw materials, supplies, in addition to the amount spent to produce this product or the provision of this service with electricity, maintenance, depreciation of machinery and equipment, cleaning and conservation materials, among others.
Furthermore, costs can be classified into:
Direct Costs: everything that is directly linked to the production of the product or service offered by the company, such as raw materials, labor, supplies, among others. They are the easiest to identify.
Indirect Costs: values linked to the production of goods or services offered, but indirectly. Examples of indirect costs are items such as maintenance, cleaning, warehousing, logistics, electricity, food, and all other manufacturing expenses that do not directly affect the product itself.
What is an expense?
Expenses include all the money spent by the company to keep it running.
Usually, the expense is related to everything spent on sales, finance, administration, human resources, systems, marketing, and the BackOffice in general. Therefore, expenses are a type of spending that has no direct connection with the “core” activity of the company, such as producing goods or providing services.
But even though they do not contribute directly by generating new items to be marketed, expenses play a key role, and certainly their use can have an influence on increasing the company’s revenue.
And in turn, expenses can be classified as fixed or variable:
Fixed Expenses: those that do not vary according to the volume produced or sold by the company. Examples of fixed expenses are physical structures, furniture, office supplies, among others.
Variable Expenses: any type of expense that will vary proportionally according to the volume produced or sold by the company. Examples of variable expenses include sales commissions and taxes.
In this context, it is worth pointing out that expenditures are basically costs and expenses in general. And typically, when someone talks about reducing costs they are talking about “reducing expenses”, but in a “colloquial” way. So, it is worth remembering that it is also fundamental to analyze the possibilities of reducing expenses in the organization.
But its response is inversely proportional, proving to be extremely complex.
Reducing costs is one of the greatest allies of profitability, every company seeks to reduce costs without measuring efforts, but as we mentioned, it is a very complex task. We must be aware that, when reducing costs, we must always be cautious not to cause negative impacts and end the operation in deficit.
Are companies that have tried to reduce costs happy with their initiatives?
Not always: A survey by the US Conference Board found that of all the companies that tried to reduce costs:
33% succeeded in reducing
30% actually took the wrong action and ended up with increased costs
22% fired the wrong people
80% presented what they called a “collapse in employee morale”
A study done by Deloitte showed that 75% of the companies that laid off employees to reduce costs had to rehire others for the same positions within a year.
Another survey, this time from McKinsey, showed that only 10% of cost reduction projects are successful after 3 years of implementation.
But why did these reduction initiatives fail? Surely because of the lack of a better understanding of how resources were consumed in the organizations. The natural consequence of not measuring properly is in the same proportion the inability to make good management.
How to make a cost reduction?
To solve this problem, here are 8 actions that will reduce your costs and consequently increase your profits:
Beware of false impressions
Analyze your costs on a percentage basis
Use a reliable registration system
Reevaluate the tax regime
Know how to negotiate with suppliers
Hire qualified professionals
Invest in marketing actions
But the main lesson of all is: understand your costs.
Not understanding how much exactly a product, service, customer, or channel cost ends up hurting the entire decision chain of companies! Definitions such as what prices and rates to practice, which customers to serve, what discounts we can grant, and what commissions to pay our salespeople, among many others, require a real understanding of costs and the ability to measure them adequately!
Did you know, for example, that between 20% and 40% of products and services are loss-making? And that 20% of customers are unprofitable? So, we must ask ourselves: what actions will we take immediately after identifying where the bottlenecks are in our organization?
Sergio Marchionne, former CEO of Fiat/Chrysler was responsible for the company’s renaissance in the 1990s. Besides being a great manager, Sergio Marchionne was always very humorous. After the launch of the Fiat 500e electric car (aka “electric cincoecento “) Sergio came out in public and asked, “Please don’t buy our cincoecento!”
A few months earlier the Fiat 500e had been launched with much pomp and circumstance, consuming many millions of Euros with the promise of being the great European competitor to Tesla and with the advantage of being extremely economical. There were many delays in launching the product, and when it was finally ready, very few units were sold. Studies showed that the loss per unit sold was EUR 20,000!
Undoubtedly, understanding costs and establishing strategies to control them are important challenges in company management. And that, in turn, cannot be surpassed if we don’t have a clear capacity to make the best decisions, with well-defined methods and processes and adequate methodologies for the great challenges that are still to come.
Management in the education sector aims to identify and plan a set of strategies and actions with the purpose of achieving the objectives of the educational institution by using the resources available in the best possible way.
In general, the management in this sector focuses on educational methodologies and practices, using different tools, techniques, and intellectual capital to lead and guide the teams during the execution of the project. For example, the development of the stages is monitored in order to identify the necessary adjustments, ensuring the quality and fulfillment of the activities.
Based on this context, we’ve prepared this post for you to learn about the best management practices in the education sector and put them into practice. Keep reading the article to know more about this topic!
Make a good planning
The first step in any management strategy is to start with structuring the project’s plan. Preferably, create a document, for everyone involved, containing guidance on the actions of the school year in question, such as:
and other objectives for the year.
The purpose is for managers to make the decision-making process easier. Keep in mind that this planning should undergo a periodic review so that the necessary adjustments and updates of the institution’s demands are carried out.
Set and monitor goals
Promoting a good management in the education sector is a task that can only be carried out assertively if the institution has very well-defined goals. The determination of objectives serves as a parameter for the pedagogical teams and other employees involved, having all the reasons to improve the teaching.
Set goals related to student performance and monitor them to measure aspects such as the student dropout and retention rates and the qualification of teachers. That way, managers will have all the data needed to develop strategies aimed at achieving better results.
Communicate with the team
Clear and transparent communication between the personnel that make up the educational institution’s team of collaborators is essential for the management in the education sector.
The faculty and other professionals who are part of the daily lives of students should have full knowledge of the goals and objectives to be achieved. Furthermore, feedback exchange between the team is important, so that everyone knows which points they are getting right and which ones they need to improve on.
Invest in technology
The use of technology in the education sector has proven to be a real ally, in and out of the classroom. This is due to the advances made by the digital transformation process.
Given the context, to invest in management technology in the education sector is to bring the benefits of automation to the school. In addition to automating manual and repetitive tasks, the teaching team is able to dedicate more time to teaching methodologies, just as managers are allowed to focus on strategic issues.
Do you want to know more about the MyABCM solutions for mapping costs using technology in your company? Then contact our team so that we can show you the very best in digital innovation for your business!
BPCE SC – Solutions Crédit, part of Groupe BPCE, has joined us, adding another important name to our client portfolio. The organization operates in the bank credit sector, providing solutions for around 20 financial entities of the BPCE Group.
Founded in 2005, the company is a subsidiary of Groupe BPCE, which currently stands out on the European scene as the second largest banking group in France. BPCE SC, in turn, is a national platform with four offices in the French territory, located in the cities of Laval, Reims, Montpellier and Maisons-Alfort.
The Group has over 100,000 employees and 30 million customers, and is present in 40 countries. In this complex scenario, the BPCE SC institution manages, on behalf of its members, from credit assistance and management services to release of funds, borrower’s insurance and solutions for over-indebtedness. As a result, they routinely handle an extensive volume of information, which must be carefully processed.
The company, which until recently carried out its cost control processes using Excel spreadsheets, needed a platform that offered more agility and precision for the management of resources.
Assertive and simplified cost management
In order to have more control over its management, BPCE SC chose the MyABCM solution. The platform, which is already used by three other entities of the group (BPCE IT, Natixis, Natixis Assurance), offers the flexibility needed to allocate the different cost centers and analyze the profitability of each service provided.
The project will be carried out by A2 Consulting together with MyABCM France, and should provide the basis for an even more successful management.
Present in the most diverse segments of the market, data analysis is a procedure that has revolutionized modern society. In short, it consists of using technology to process large volumes of information in a few seconds and generate relevant insights for strategic decision-making.
As the public sector has also been following the current process of digital transformation, modernizing its channels of communication with the audience, and carrying out operational processes, data analysis cannot be left out of companies linked to government agencies.
Therefore, we’ve prepared this post so that you understand the importance of data analysis for public services. Read the article to learn more about this topic!
What is the importance of data analysis for public services?
If you follow the technological trends for the corporate world, you may have noticed how the integration of company departments – using CRMs and ERPs – has gone from being a mere whim of entrepreneurs with a “modern view” to being a competitive “requirement”.
This is because eliminating communication noise and integrating all information sources in a single digital environment leads to cost reduction and boosted productivity, while also improving the data analysis. And these same principles apply to institutions that provide public services.
Let’s say the Municipal Department of Education wants to organize a cultural tour with public school students. To do so, it must make a formal request to the Municipal Department of Culture and the Municipal Department of Finance.
Without the use of technology capable of integrating communication and data in a single system, this process would be highly bureaucratic, time-consuming, and susceptible to several errors. Now, with innovative technological solutions, both the communication and the data analysis in the public sector are improved.
How can choosing a technological tool help in data analysis in the public sector?
The first step in choosing a public management system is to make sure that the software provider has enough credibility and experience to offer transparent and effective solutions, both for employees working in the sector and for citizens.
It is very important that this system is equipped with resources that allow, for example, the availability of information about expenses, the integration of departments and, of course, data analysis to improve strategic decision-making.
Another point to be considered is the tool’s ability to use data intelligently through Big Data, as this area of knowledge provides a series of benefits, such as:
Contributes to the improvement of the provision of services to citizens;
Has structured information, which can be used for a more integrated management;
Provides information with more transparency and clarity;
Provides more conditions for managers to adopt preventive actions.
As you could see, data analysis is already a reality in organizations of different sizes and market segments, which has led utilities to invest in the modernization of processes as well. We also showed you how to choose a technological tool for the public sector.
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We present a customer from the logistics segment: Andreani Logística Brasil. The organization is part of Grupo Logístico Andreani, whose operations began in 1945 in Argentina. Currently, the business leads the segment of high value-added logistics services, serving the pharmaceutical, cosmetic, hospital equipment, medical and diagnostic technology, as well as animal health products, in addition to other markets.
The company has been operating in Brazil since 2001, concentrating its activities in the south, southeast and central-west regions, where the four branches in the country are located. The business’s priority is to promote the development of a distribution infrastructure that meets the very specific needs of the healthcare sector. In this context, the services provided by Andreani include the integration of the areas of storage, distribution and reverse logistics for its clients.
As it serves multiple companies, in a sector with strict operational and safety requirements and in an extensive territory that is mainly covered by road network, the organization needed a cost and profitability management system that would allow it to efficiently analyze the results of each client separately.
Performing sector analysis
To achieve these goals, the MyABCM Express Solution, suitable for businesses that deal with complex operations, was implemented. Among the gains for Andreani, there will be the possibility of taking into account all the characteristics of each client, without the need for knowledge in code and programming. This advantage, associated with a highly flexible modeling and the application of manual controllers through a user-friendly and simple-to-use interface, will ensure that the company has a precise control of each cost source, as well as the ability to issue accurate reports.
In addition to implementing the system, our team will train Andreani Logística in the distance-learning format, as well as provide consulting services in the first stage of use of the platform.
The company’s varied mix includes juices, waters, beer, energy drinks and soft drinks. The story of this traditional company in Rio Grande do Sul began in 1924, with a production capacity of 200 bottles a day, and it represents a true family management success story.
Since its inception, the business has undergone a significant growth and currently produces, among its various fronts, an average of 420 million liters per year. As such, it faces challenges that are typical of the management of a large organization.
Diversifying the product line and managing multiple brands that serve audiences with different characteristics requires a highly detailed look at the cost management and the performance of each one of its revenue streams. In addition, the complexity of distribution operations increases at the same pace as the business grows. Currently, the industry has six distribution centers, which requires the adoption of an efficient system for the allocation of the various cost centers.
Solution applied for cost control and profitability
Given the level of demand involved in the management of activities of this size, and aiming to improve its cost control and increase its profitability, Fruki Bebidas decided to implement the MyABCM Corporate platform.
The system adds dynamism and versatility to cost and profitability analyses, being able to manage a high volume of data with flexible modeling that can be customized to the specific needs of the business.
In addition to implementing the software, platform users in the company will also undergo training to use the MyABCM Corporate resources with maximum productivity. The expected result is a more assertive cost management, capable of basing the decision-making process in the multiple management spheres of the organization and generating an increase in profitability in the medium and long term.
Do you want to do like Fruki and take your company’s cost and profitability management to another level?
Betting on innovation in retail has become a popular strategy in recent years because of the exponential increase in competitiveness in the sector. This is due to, among other factors, a significant digital transformation process in society and the constant changes in consumer behavior.
To arouse the interest of the audience and stand out from the competition, it is necessary to invest in creative ideas, humanization of service, and all kinds of technological resources that can enhance the company’s results.
We’ve prepared this post for you to check out some of the greatest retail innovation trends for the years to come. Read the article to learn more about this topic!
Visual merchandising, or simply, window dressing, has always been a strategy widely adopted by retail. Composing attractive scenarios and highlighting short texts in display windows, aimed at activating mental triggers that arouse people’s attention, has always worked very well.
This concept is also being revamped with the wave of retail innovation and, to give it a touch of modernity, many companies have invested in the digitalization of display advertisements.
In this regard, the best-known tool is digital signage – a type of interactive screen on which it is possible to program the presentation of texts, images, product information and many other functionalities.
Optimization of the customer experience
With the growing wave of purchases and transactions carried out in the virtual environment, with the help of chatbots and all kinds of technological resources, much has been said about the importance of humanization of service and the strengthening of ties between the consumer and the companies.
The fact is that, nowadays, a customer is not just looking for a product. They want to have a complete consumption experience, in which every step is convenient for them, whether in a physical or virtual store.
Merchandising actions, event production, sensory marketing and UX design are just a few examples of consumer experience optimization tactics that have been innovating retail.
Geolocation in physical establishments
Current marketing campaigns already count on geolocation strategies, as this resource has proven to be very efficient in targeting the audience to be reached, for example, on social media ads.
The great news is that this tool can now also be applied in physical establishments. Retail companies can catalog their products at a large POS and provide consumers with an app, on which they can use a map to find the item they want to buy.
As you could see, retail innovation is already a reality in the modern market. Investing in the humanization of service, in the use of technology to streamline processes, and in actions aimed at providing a more pleasant consumer experience are just the beginning of a highly promising future ahead.
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