Automotive manufacturer enhances business decision-making processes with Plex
Client background
The client is a $160M global manufacturer of automotive wiring harnesses and battery cables for the automotive aftermarket.
The business challenge
Across their three locations globally, the client had been using Plex Smart Manufacturing Platform since 2011. After years of using Plex, they recognized a need to gain better insights into costing and financial data to optimize costs, increase margins, gain a competitive edge in the marketplace and support future business growth. Since initially implementing Plex, the client recognized several challenges in their current business environment, including: increased business competition, eroding margins and a lack of process, system and data discipline that prevented them from conducting proper analysis of costs, margins and ideal product mix.
Utilizing our Standard Cost Activity Report (SCAR) analysis toolkit and related methodology, a team of Baker Tilly and client team members identified several key areas of focus:
- SCAR configuration and processes
- Supplier pricing data management
- Workcenter cost data management
- Employee efficiencies
- Cost variances and analysis
- Margin analysis
- Financial close processes
- Reporting and financial statements
Strategy and solution
The Baker Tilly team took a hands-on, collaborative approach to identify key issues and achieve the objectives of increased cost accuracy, identification of variances, analysis of margins and more accurate assessment of ideal product mix through the following activities:
- Collaborative workshops
- Process review and re-design
- System configuration updates
- Knowledge transfer
Baker Tilly’s SCAR analysis toolkit provides organizations with the tools, knowledge and training needed to take full advantage of Plex’s costing capabilities. Leveraging our SCAR analysis toolkit and leading practices, the client’s leadership team now has increased visibility into critical cost, margin and product data, and is experiencing the following benefits:
- Leveraging data for business decisions
- Detailed margin visibility by geographic location, product groups and types
- Detailed variance visibility and analysis
- Detailed employee efficiency data
- Geographic re-alignment of product mix
- Standardized accounting processes
- Reduction in month end close process from six to three business days