Case study: Costs Analysis
“The MyABCM team’s unconditional support helped facilitate the implementation of the costing model enormously. Even after this stage, we had access to the support of these professionals in extracting the information necessary to generate reports.”
Eduardo Gonzalez Plasencia
Bardahl, a company founded in the United States in 1939, is a leader in the automotive fluid, additive and lubricant market. It opened its first office in Mexico in 1951 and has been the market leader ever since.
Bardahl Mexico needed tools to make strategic decisions. With its business divided into several distribution channels, it was difficult to determine the precise profitability of its cost objects. Even when they suspected that one of the products wasn’t profitable, they had no tool to confirm this with confidence.
The ABC costing model, supported by MyABCM, allowed them to perform detailed analyses of the most varied cost objects to make strategic decisions, not just related to Distribution Channels, but also to products, business units and even personnel information. It was also important in establishing standards across the business units and sales departments, where the implemented model helps even in calculating bonuses.
As with every cost analysis and modeling methodology, implementing the ABC system required commitment and sacrifice from the entire organization. The benefits, however, have been innumerable, and they have led to great changes, improving the company’s profitability.