The Challenge
In a highly complex distribution environment, the company needed to go beyond traditional cost analyses. The challenge was to accurately understand how different products, customers, channels, routes, distribution centers, and logistics structures impacted the economic results of the business.
During the software selection process, a decisive technical criterion was established: the chosen solution needed to be capable of running a cost model with approximately 2 million unique activities. This requirement tested not only the platform’s processing capacity, but also its architecture, flexibility, and robustness to support complex analyses at an enterprise scale.
In addition to the volume of data, there was another important challenge: meeting different management objectives. The company needed a structure capable of enabling strategic analyses for leadership, operational views for managers, and transactional analyses for deeper investigation of specific situations.
The Solution
MyABCM was selected for demonstrating the capability to support the level of complexity required during the selection process, including processing a model with 2 million unique activities.
The solution was structured to analyze six main dimensions:
| Dimensions |
Objective of the analysis
|
Product
|
Understand cost and profitability by product |
Channels
|
Evaluate economic performance by sales channel
|
Customers
|
Identify profitability differences and resource consumption by customer
|
Routes
|
Measure the economic impact of different delivery routes
|
Distribution Centers
|
Evaluate costs and performance by distribution center
|
Fleet Type
|
Compare impacts between owned and third party trucks
|
To meet different internal needs, three complementary models were created:
This architecture made it possible to connect the operational complexity of distribution with a clearer, more structured, and reliable economic view.
“The project was only possible thanks to the flexibility and processing power found in the MyABCM solution”
Results
With MyABCM, the company gained a much more granular and integrated view of its costs and results. Profitability analysis started to simultaneously consider products, channels, customers, routes, distribution centers, and the type of fleet used in deliveries.
The creation of strategic, operational, and transactional models allowed different internal audiences to access information at the appropriate level of detail for their decisions. Leadership gained an executive view for strategic decisions, while operational areas received more detailed information to understand the factors influencing costs, margins, and performance.
The project also demonstrated MyABCM’s capability to support highly complex models and large volumes of data while maintaining the flexibility to answer different business questions across the organization.
In summary, the company succeeded in transforming a highly complex cost environment into a robust analytical structure, enabling more precise decisions regarding profitability, logistics efficiency, commercial performance, and resource management.
