ORKLA FOODS NORGE

OUR CLIENT

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.

BUSINESS CHALLENGES

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 The solution in place was outdated, had complex and hard-to-maintain allocation keys.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.

SOLUTION

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.

BENEFITS

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.