PROFITABILITY & COST MANAGEMENT

ENTERPRISE PERFORMANCE MANAGEMENT SYSTEMS

SAS for Profitability & Cost Management

Driving better business decisions with more accurate cost modeling

SAS Profitability & Cost Management is an analytic application that models business processes to accurately determine process, product and customer cost and profitability. With this solution, you can make informed decisions to streamline processes, deliver revenue growth and reduce costs across the organisation.

SAS provides the Profitability & Cost Managemen (PCM) solution within the Enterprise Performance Management (EPM) solution suite. It provides activity-based costing and profitability modeling capabilities through a multi-dimensional calculation and reporting engine, providing cost and profitability information of customers, products, and channels, etc. by activity and resource. It supports both traditional cost allocation and consumption-based resource capacity modeling, including time-based transaction costing.

SAS Profitability & Cost Management (the new name for SAS Activity-Based Management) is an analytic application that determines cost and profitability by modeling business processes as cost flows among accounts.

BENEFITS:

Evolve the way you do business

Gain insights into cost accumulation in a way that management, marketing and operations personnel, not just finance experts, can understand and act on. Tie financial results and KPIs to strategy by measuring profitability at the division, department, channel and individual product and customer levels.

Manage shared service cost allocations

Get a more accurate reflection of true costs and profitability by managing how shared service costs and IT charge-backs get allocated to products, customers, channels and services. Create more accurate Budgets and Workforce Plans.

Improve processes by identifying activities that don’t add value

Identify cost bottlenecks, rework and non-value-added activity. Use what-if analysis to model and simulate how changes in driver volumes affect costs, profit and resource requirements.

Understand the effects of cost and process variations on performance

High-performance in-memory modeling quickly identifies issues and provides insight into weak links in the supply chain, under-utilised capacity and opportunities for cross sell and up sell. Complex models that used to take hours or overnight to update can now be run in a fraction of the time.

FEATURES:

Dimensional profitability analysis allows you to calculate and report profitability contributions to business segments such as product, customer and organisation.
Capacity costing and modeling includes available vs. used or idle capacity, what-if analysis for resource planning and activity-based budgeting.
Account search helps you find dimension members within a deep hierarchy, or search accounts with no cost/assignment or attributes.
Intra-modular assignments assign costs in the same module and allow flexible cost pooling and flowing.
Reciprocal cost assignments provide simultaneous two-way cost assignments between accounts and trace detailed cost flows.
External and internal bills of cost can be linked directly to an account.