Cascades Group

Pulp & Paper Division, East-Angus

 

OBJECTIVE: Develop a precise cost price calculation for each ton of paper produced as well as to help management make better decisions
CHALLENGE: Gather data from multiple and diverse systems and rationalize an intuitive and complex calculus into a rigorous calculus algorithm

SOLUTION: ERP solution integrating data from multiple business processes, with advanced assistant-to-decision-making features
RESULT: Increase of 10 % of gross profit margin for every ton of paper produced since; thanks to enhanced purchase and sale strategy

 

Cascades logo 150x90 Cascades Group

Costs in the pulp and paper market are always in flux. Many factors affect the bottom line, notably energy and labour costs, without factoring in the costs of operations and the onerous equipment costs that will vary with interest and currency rates, as well as many other factors. It is within this context that Cascades Group wanted to get more accurate data; hence, the calculation of the cost price of each ton of paper produced is crucial to be able to fix the sale price and thus, to calculate the profitability of the business. Management must make strategic decisions regarding investments, purchasing and production based on this information.

 

Analystik developed a cost-price solution in which the cost price for every ton of paper produced can be determined. This application synthesizes a series of complex calculations which cost out the use of various types of machines, raw materials, energy costs, labour costs, waste chemicals etc. Today, still, in spite of the very high degree of conversion towards the AS400 system, the Analystik-supplied cost-price application delivers the precise cost of every ton of paper produced by the factory of Cascades Groups, East-Angus.

 

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