Pyroll Packaging is a Finnish packaging manufacturer that produces cardboard, paper, plastic, and aluminum packages. The packages are manufactured in eight different production facilities with a workforce of nearly 300 employees.
What were the challenges?
The entity formed by several different factories did not provide a uniform picture of the profitability of customers at the level of the entire packaging business. There was not enough transparency on supply chain cost factors to focus development activities. Transparency was needed for customer and product profitability. The constant intensification of competition in the industry and its internationalization set the conditions for the continuous development of cost efficiency.
How we helped?
We built a profitability solution that covered the entire packaging business, which provided information on the total profitability of customers throughout the packaging business. The solution provided an operating profit-level outlook for factories, customers, products, sales channels, orders and delivery lines.
What were the results?
The solution revealed the impact of customization and various customer requirements on profitability and combined the overall picture of the profitability of the packaging business’s customers. The results provided an insight into the impact of different operating models on profitability, which opened up opportunities for internal benchmarking and dissemination of best practices.
“This is a profitability management solution allowing you to focus on the right things by identifying which products and customers are profitable and which are loss-making. Root cause analysis enables systematic management of profitability in daily operations and decision-making. This new insight opens up many opportunities for business development across the enterprise.”
Eero Niskanen, Chief Information Officer