With revenues of R$ 750 million, 2,000 employees and more than 100 products, this pharmaceutical company is one of the top-10 players in the Brazilian market. It is the leader in Cardiology, and has a significant presence in Gynecology, Dermatology, Pediatrics, Orthopedics, Gastroenterology and Rheumatology.
- The client had developed an internal costing model, however it did not fulfil the expectations, both from an accounting as well as operational perspective.
- In particular, information about product cost were not available or reliable.
- As a result, the CFO of the company asked us to analyze the existing solution and propose one that is easy to operate on a day-to-day basis and provides reliable results.
- In a first step, we assessed the existing solution and defined the objectives for implementing a new costing model as well as desired scope (managerial / accounting cost , vision per factory...).
- In the next phase, based on a fully-allocated costing approach, factory processes were analyzed, cost pools and drivers of allocation defined.
- Finally the new costing model was created, an implementation plan defined and the new costing model implemented.
- The new costing model was successfully tested and integrated into the implementation of the new corporate SAP system.
- Based on the new costing model and the information it provided, the client started specific initiatives on:
- Effectiveness (Portfolio review, commercial strategy, new market entry),
- Efficiency (Revision of unit costs, process improvement, organizational review).