Modelling and implementation of cost management and asset utilisation
What they asked
Our client is a Dutch based high-tech innovation leader in geodata imaging and applications. The company's objective is to ensure future growth in both Europe and overseas, while closely monitoring cost. They require monthly reporting to capture operational and financial data and better cost allocation to monitor and steer unit production cost. In addition, they want to increase asset utilisation. They asked our assistance in designing and implementing the above.
What we did
We thoroughly analysed the cost and activity drivers for both asset and people cost. We built a detailed model that links cost and activity drivers to cost per mile. We loaded the operational and financial log tables into the model making it user-friendly and easier to transfer. We advised the client about ways to improve their asset and driver utilisation with regards to the seasonal and weather dependent nature of the company.
What we accomplished
The abovementioned measures taken, resulted in transparent unit costs and drivers to facilitate a more efficient asset and driver utilisation. We compiled a sustainable model to use in day-to-day operations and financial reporting. The measures taken also resulted in improved data integrity and more efficient data processing. We provided them with a concrete set of levers for the COO for the improvement of the utilisation of cars, cameras, and drivers.