latvenergo

Latvenergo

“Precise financial information is a fundamental requirement for making a correct, informed decision. Undeniably, MyABCM is a tool that offers us great support.”

Guntars Balcuns
Director of Planning and Control
Latvenergo, Latvia

COMPANY

Latvenergo is a public company based in Riga, Latvia, which plays a key role in the economic scenario of this country. It’s focus is on the generation and sale of electric and thermal energy. The company had an ABC costing model using Excel spreadsheets that was basically used to assign the company’s support costs to its subsidiaries as well as separating the costs of generating energy (thermal and hydroelectric stations) and selling energy. Thus, it was possible to obtain an individual analysis of these units.

CHALLENGE

The main problems with the previous system was the model’s transparency, its lack of flexibility in relation to recurring structural changes, and the absence of any functionality to deal with reciprocal cost assignments. Given this, in 2008 Latvenergo opted to acquire a professional costing tool that would support activity based costing.

SOLUTION

The MyABCM costing software was selected as the best alternative available in the market for calculating and analyzing real costs from a cost/quality standpoint.
One of the objectives for this migration was to improve the quality of the model and to also implement the improvements recommended by the consultants responsible for the software’s installation. All of the data was transferred to MyABCM in less than a month with help from the consulting firm’s specialized professionals.
The initial structure and assignment logic were maintained even after the migration of the model to MyABCM, even though recommendations to improve it were suggested during the process, and a few of them related to the model’s transparency were implemented during the migration itself.

RESULTS

ABC Costing is a methodology of assigning indirect costs with the goal of analyzing the real cost of services offered. This methodology has been used mainly by companies in various sectors (industry, services, the government), and all over the world to support strategic decisions in terms of pricing, outsourcing and process improvements.
Transferring the original model to a professional system for calculating and analyzing costs is the first step to implementing the ABC Costing methodology and benefitting from its greater control and reduction of costs. Some of the benefits that MyABCM has given us are an easy to use, user-friendly tool, much greater model transparency, countless possible analyses, simple updates and the ability for many users to access the model at the same time.

Customized Solutions for Your Company’s Financial Management

Based on our broad experience in the market and our successful case studies in practically every sector, we’ve developed and continue to refine complete and innovative solutions for the strategic management of costs, profitability and performance. Our products have been created to meet the specific needs of each client.

MANUFACTURING

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Bardahl
A leader in automotive fluids, additives and lubricants, it uses MyABCM to identify opportunities to optimize its profitability.
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corporacion aceros arequipa

Corporación Aceros Arequipa
A Peruvian group founded in 1964 which is a now a leader in the steel industry, it produces and distributes steel bars to the machine and construction industries and uses MyABCM to trace opportunities to reduce and optimize costs.
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cadbury

Cadbury – Grupo Peñafiel
One of the largest beverage companies in Mexico, having been in business for 60 years, it uses MyABCM to analyze the profitability of delivery routes, markets, brands, channels, regions and clients.
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corporacion maresa

Corporación Maresa
One of the largest corporate groups in Ecuador with most of its businesses oriented towards the automotive sector, it has installed MyABCM‘s profitability software in several of its business units.
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qualtia alimentos

Qualtia Alimentos
A food company founded in 1972, it makes and commercializes meats and cheeses in over 40 countries and uses MyABCM to periodically identify opportunities to improve profitability.
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SERVICES

teo

TEO
A provider of broadband internet access and telecommunications services, it offers integrated telecommunications, IT and TV services to residences and offices in Lithuania and uses MyABCM to analyze costs.
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martins

Martins
The largest wholesale distributor in Latin America, it uses MyABCM to help it view the profitability of the company’s main business areas.
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unimed

Unimed
Unimed-Rio was created by and is run by doctors using the best practices in medicine. It seeks to achieve the highest level of excellence in its services for the largest number of people.
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Hospital Metropolitano de Urgência e Emergência

Hospital Metropolitano
Reference in the health sector in northern Brazil, it uses the MyABCM tool to help it manage hospital costs.
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visa vale

Visa Vale
A company in the Visa group and a leader in the electronic card benefits sector, it has 60 thousand company clients and uses MyABCM to detail its indirect expenses per Product, Channel and Client.
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servipag

Servipag
The MyABCM solution helps this Chilean leader of the financial payment and transaction segment to plan the cost and profitability of each of the services that it provides.
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carrefour

Carrefour Soluções Financeiras
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stime

STIME
A division of Intermarché groups, focused on IT services, utilizes MyABCM for strategic costs management by activities.
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PUBLIC SECTOR

imprensa oficial sp

Imprensa Oficial do Estado de SP
One of the most traditional and respected organizations in Brazil, it uses MyABCM to analyze costs in various dimensions like Product, Client Type, Sales Channel and Sales Type.
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latvenergo

Latvenergo
A public company located in Riga, the capital of Latvia, it uses MyABCM to know in detail the costs of the services it provides and to analyze individual results for its various business units.
► Case Study