Cost Management Consulting
Through Cost & Management Consulting, Pro~Active Solutech can help your company to achieve cost optimisation and profitability improvement. We take a holistic approach by combining three integral elements – Consulting, Technology Solutions and Training Services. By doing so, we optimise our solutions to meet the specific needs of each client in the most efficient manner.
Consulting services
Pro~Active Solutech specialises in business consulting for cost optimisation and profitability improvement with a focus on processes (activities) and methods. With this service, we aim to identify, suggest and implement measures that help our clients to improve profitability across the business. Through this exercise, we help to streamline the costing process, promote the exchange and use of costing information across functions, and bring in greater cost awareness throughout the organization.
Cost modelling: Our management team brings in specialist expertise when it comes to cost model building. This expertise has been honed over projects at diverse industries and business processes. We understand the intricacies of costing and configure the design, taking into account the needs of each industry and client. The costing design will dovetail the accounting systems of the company with the production parameters captured in the production systems of the company.
Cost Improvement: initiatives are critical to improving profitability as well as customer satisfaction. Our team will work closely with the client’s techno-commercial team to identify appropriate performance measures for various activities and apply the same in a manner tailored to the client’s requirements. We help clients set as well as realize their desired goals in terms of cost reduction. We also assist clients in establishing internal benchmarking in respect of various performance measures across diverse units. Our robust MIS reports help companies track optimum cost reduction from their kaizen initiatives.
Consulting For MSMEs
According to the Government of India’s annual report, Micro, Small and Medium Enterprises (MSMEs) contribute approximately one-third of the country’s Gross Domestic Product (GDP), with consistent, annual growth of more than 10%. There are more than 6.3 million MSMEs in the country and about 2 million units are engaged in the manufacturing sector alone.
According to the MSME report of the Government of India, more than 11 crore people are employed in this sector, and it is the second largest employment generating sector in the country (with the agricultural sector being the first largest). As per the information received from the Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of MSME-related products in our total exports was around 45.04% (in FY 22).
In spite of being an integral part of the sustainable development of the country, MSMEs face enormous threats and challenges in terms of survival and growth. The challenges include:
- Financial
- Strategic
- Operational
- Supply Chain Management
- Threat of Internationalisation
Given the importance of financial planning and sustainability, and the increasing need for enterprises to operate economically, efficiently, effectively, efficaciously and ethically, management accounting has a crucial role to play in improving the quality of planning, control and decision-making
Hence, the need for an Enterprise performance management system for MSMEs becomes imperative. At Pro~Active Solutech, we address this issue by helping MSMEs to institute a system that can:
- Track costs of product/service offerings accurately
- Putting in place a system of cost controls
- Enable them to create, extract and use cost information for decision-making (short and long-term)
- Support them through creation and installation of customised software (if need be, to help with the above processes)
Technology Solutions
ABIS~Pro
ABIS~Pro, developed by Pro~Active Solutech, is a software package that helps to unearth useful insights into issues that have been plaguing the bottom-line. ABIS~Pro offers solutions for three top areas where companies need assistance:
- Strategic decision making with informed cost management
- Optimising and improving operations
- Maximising product and customer profitability
ABIS~Pro can be integrated with different ERPs, across companies in varied industries for a range of benefits, including determination of cost per unit and net margin, cost reduction, cost control, pricing decision, make-or-buy decisions, variance analysis, budgeting, simulation, and product and customer profitability.
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PRICING~Pro
PRICING~Pro is the answer to issues faced centred around pricing – especially when it comes to quoting for new product development (NPD) or preparation or submissions of RFQs.
Main Features include:
- Easy to use web-based solution with system-controlled dynamic business process flow
- Enables multiple-levels of access for different users with sequential or parallel process
- Simulation / sensitivity analysis – provides a glimpse of the potential impact of change in process parameters, material prices, and exchange rate fluctuation
- Dashboards to track status and view complete history of enquiries
- Provision for calculation of interest on working capital and customer-specific costs
- Provides multi-currency option
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Training Services
We conduct academic workshops for corporate managers in the field of cost & management accounting. These workshops are conducted by highly experienced and respected techno-functional thought leaders with in-depth industry experience. On-site workshops are packaged as half-a-day, one-day or two-day sessions, based on the topics to be covered.
Some of the topics covered include:
- Leveraging Economic Cost Modeling for Profitability & Cost Management
- Practical Approaches & Best Practices for Developing Product, Customer and Channel Profitability Systems
- Critical factors for successful Implementation of Profitability & Cost Management System