Case study: Profitability Software
“MyABCM allows you to view the costing model in a graphic manner, which facilitated its validation as the project evolved. The support we received in terms of optimizing the conceptual model’s structure, integrating company information with the profitability dimensions, and the generating of reports, was very agile. We received enough training so that we could progress on our own, knowing that at any moment we could count on support from the MyABCM team.”
Juan Carlos Arellano
CFO, Executive Vice President
Corporación Maresa, Ecuador
The Corporación Maresa was created in 1997 in Quito, Ecuador, with the objective of forming a conglomerate of auto dealers and automakers. The companies that comprise this holding company are Maresa Ensambladora, Mazda, Ford, Avis, Kawasaki and Maresa Colombia. Corporación Maresa Holding supervises the operations of its component companies developing business strategies and providing support to various areas.
The challenge for Corporación Maresa was to inculcate a culture of strategic cost management, going from the assignment of corporate costs to various business units to profitability per product, client and channel. The organization already had accounting information per cost center and standard costs at one of its manufacturing units. However, it couldn’t tell clearly the effort that the support areas provided the rest of the company. They also didn’t have profitability information per client and channel, especially in the commercial and service units.
The MyABCM software chosen is very light and easy to use for profitability analysis, it can simulate storage for various periods, it’s easy to use in the local language (Spanish), and it produces reports, performs graphic analyses and also measures costs based on the company’s activities. The costing models constructed for the corporate level as well as the business unit level fully met all our initial goals and expectations. Different levels of detail for costing and profitability information, as well as costing assignments, enable us to broaden the analyses which inform our decisions related to planning and scenario simulations.
The information we’ve obtained ever since the first few reporting periods have been of great value, because they’ve enabled us to see how our costs behave as well as their origins and impacts on business profitability, and this has now made it possible to manage our business targets much better. This tool also offers support for corporate budgeting, scenario simulations for various business units, and an appropriate treatment of capacity.