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R40m Improvement Opportunity Identified And Seized

CLIENT:
Major Financial Services Player

SECTORS:
Financial Services

LINES OF BUSINESS:
Performance Analytics

CLIENT FOOTPRINT:
South Africa

THE CLIENT CHALLENGE:

The client business unit managed products provided from many different product houses, but had limited visibility of product profitability. Major market trends were reducing volumes in traditional lines, but substitute products frequently had inefficient processes The client needed to understand fully the product profitability to inform the product portfolio strategy for the next 18 months.

HOW WE ASSISTED:

We captured the volumes, activities and costs across multiple functions in the value chain to create the first holistic activity based costing model. This was validated with key stakeholders and used to model the market trends and possible migration strategies, and associated rates of migration. This was then fed into a location optimization model to determine the best distribution footprint for the next 24 months

RESULTS DELIVERED:

The resulting implementation resulted in increased profitability greater than R40m per annum