Orkla Foods Norway is a leading supplier of food and beverage in Norway, selling well known local brands to consumers in the grocery and out-of-home sectors. The business leads the market in several categories including frozen pizza, ketchup, soups, sauces, toppings and ready-to-eat dishes.
To stay ahead of the competition, it is vital for Orkla Foods to have detailed insights on what drives costs and profitability. The solution in place was outdated, had complex and hard-to-maintain allocation keys. It took a long time to run, and was prone to errors, due to lack of integration with key data sources. In addition, the level of detail that the system provided was insufficient, and fundamentally, business users didn’t trust the results.
Profit& helped Orkla to implement a new product, customer & channel profitability model. Cost allocation methodology has been improved to give greater accuracy and transparency of results, as well as faster calculation times. It is now better integrated with data sources to improve reliability of results, and model maintenance has been dramatically reduced.
The Finance team have reduced the time spent time on model maintenance by approximately 50%. Results are automatically fed into Business Intelligence reporting applications, transforming the experience of business users.
Orkla can now reliably monitor and track the profitability of its products by customer and channel. Users are confident that results are accurate and information is delivered when they need it. Business regained the control of the cost base thanks to improved cost driver data. In addition, scenario modelling is used to see the impact of key changes. This capability supports business planning and assessment of strategic options.
“The solution provides insight that raises new questions and discussions by business owners. We can make informed decisions on individual products, with additional insights gained from profitability analysis by channel and customer.”Erik BarkaldCFO at Orkla Food Norge
“Our experience working with Profit& has been very good. They have shown great ability in understanding our business and our needs regarding profitability analysis. We are very pleased with both the solution and the efficient and structured process along the way.”Olav NistadHead of Business Intelligence at Orkla Food Norge
In a snapshot
Profit& delivered an improved, automated cost allocation model that now provides…
- data integration for improved accuracy & transparency of results.
- faster calculation time.
- reduced maintenance.
- business intelligence reporting that transforms business user experience.
Orkla’s Finance team can now…
- reliably monitor and track product cost and profitability by customer and channel.
- deliver a transformed business user experience with information they can trust.
- regain control of the cost base thanks to improved cost driver data.
- model scenarios to understand the impact of key changes, such as raw material prices or production volumes.
- support planning and assessment of strategic options.