Data-driven cost mapping

Context and objectives

The client is a leading manufacturer of specialty metal alloys, with hundreds of references, each with its own complex production route, spread across nearly 10 plants.

Without a fine understanding of the full production cost of each reference, it could neither manage the margins of its product portfolio efficiently nor identify the most impactful industrial optimisation levers.

Outcome

All business decisions (pricing and sales strategy, manufacturing optimisation, product portfolio optimisation) and the related functions, including general management, are now aligned on detailed, unified data.

Our approach

Step 1: developing a costing model

• Mapping of costs and cost drivers by nature, production step, plant, etc., and allocation to the related products, including finishing options
• Cost calibration to match actual overall EBITDA performance

Step 2: assessing quick wins

• Immediate pricing and manufacturing action plan to improve short-term profitability

Step 3: integration into a costing and pricing tool

• Multi-factor price proposals
• Scenario simulation (e.g. production routes, product mix, raw material costs)
• Management of data updates and access for the various stakeholders (sales, production, finance, etc.)