Together, Valcon and the ECCO Group developed a global profitability reporting system that gives access to full information and transparency, thereby enabling managers and employees to make adjustments in exactly the right places – and in due time.
Part of the solution was an activity-based costing analysis, which shows the resources required for each individual process within procurement, production, sales and logistics. The true profitability can be ascertained for all markets, customers, products and distribution channels.
The profitability reporting from contribution margin level to EBIT level is now a central element in managing the global shoe group and is a supplement to the existing management reporting to ensure that the organisation makes the right business decisions.
With this project we wished to make sure that our decision-making was made on the basis of fact rather than faith.Annemette Nøhr CFO, ECCO Group
Transparency throughout the value chain