LOGIN
us
  • pt-br
  • en
  • es
  • fr
  • polaind
]

BLOG

Categories

Cost Management
Costs and Expenses Reduction
Management
Others
Processes
Profitability

Cost simulations and their impacts on processes

Imagine being able to simulate every strategic decision before implementing it. This is a reality for an American oil company that is transforming its business approach with the support of MyABCM.

Who?

An American oil company with a global presence, project conducted at its headquarters in the United States.

What?

Simulation of cost scenarios for processes and identification of bottlenecks and capacity overruns in the native BPM module of MyABCM.

Why?

To understand the impacts of business decisions such as machinery replacement, creating a third shift in production, make or buy decisions, setting up new Distribution Centers, partial fleet outsourcing, and much more…

How?

Development of a cost modeling by process with detailed analysis of the P&L by products, channels, customers, routes, and Distribution Centers—using allocation criteria that respect cause-and-effect relationships and minimize arbitrary allocations. Identification of installed capacities in production and back-office, allowing for sophisticated planning analyses. 🚛

Benefits?

Agility in decision-making processes, simultaneous analysis of multiple business scenarios, and their respective impacts on the company’s global results.

Conclusion

By simulating scenarios BEFORE actual implementation, the company was able to make strategic decisions based on facts and mitigated the risk of decisions based on assumptions. With the ability to compare multiple scenarios simultaneously in the tool within a BPM view, the decision-making process was made easier. 💪

Practical Example

In the image below from MyABCM, you can see the cost modeling done with the mapping of business and back-office processes and respective costs for a specific scenario. Note that the activities in red are those that, after running the simulation scenario, will have bottlenecks—either due to a lack of installed capacity, a shortage of people, or excessive effort. In less than 10 minutes, the company was able to discard 7 proposed scenarios and choose a more favorable scenario for implementation.

The MyABCM solution is essential for any organization to make the best decisions, improve efficiency, and responsibly manage its costs. 🎯

How is your company using data to improve operational efficiency?

Talk to MyABCM

Request a demo bellow and know what MyABCM can do for your company.

If you are interested in MyABCM solutions and need more information, please send us a message.