SAP PCM Rapid Deployment Solutions


Rapid Deployment Solutions

Due to the vast number of implementations we have engaged in, we have noticed themes develop in relation to specific PCM use cases.  We codified these themes as well as other technologies into a single quick-start approach allowing significantly faster value recognition and insight for you.  The Rapid Deployment Solutions include quick-start templates for PCM to address the specific solution focus as well as the following:

  • PlaidXL for immediate access to PCM through Excel using PlaidXL’s powerful reporting and ad-hoc analysis capabilities
  • PlaidLink High Speed Data Loader for supercharging PCM data integration times and automating data loading
  • PlaidCloud Analyze for web based ETL, data curation, and data staging for both data and meta data
  • PlaidCloud Profit
    • For highly scalable multi-stakeholder PCM model interaction and change control
    • For PCM model auto-documentation, model change reporting, model comparisons, and change impact analysis

PlaidLink, PlaidCloud Analyze, and PlaidCloud Profit are all accessible through a web based interface eliminating the need for software installation and providing a single platform for managing all things PCM.

The RDS approach includes installation and configuration of PCM in multiple environments, PCM client installation and configuration, RDS template deployment, PlaidXL Excel Add-in installation support, PlaidLink configuration, and PlaidCloud environment setup.  As part of each RDS implementation we provide eight weeks of consulting support to bring the solution from inception to go-live.  We are PCM experts, and we understand that businesses contain significant complexity, requiring specific treatment.  In these cases, the RDS can be augmented with your needs with additional consulting support.

In addition to RDS offerings, we also provide the PCM in the Cloud, so you have zero installation and maintenance requirements.

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What’s Included

Available Rapid Deployment Solution Focus Areas

  • Transfer Pricing
  • Cost to Serve
  • Enterprise Profitability

    • Customer Profitability
    • Product Profitability
    • Customer and Product Profitability
    • Customer, Product, Channel/Market Profitability
  • Manufacturing Cost Accounting

  • Manufacturing Product Standards
  • Bill of Materials Cost and Sales Forecasting
  • Shared Service Chargeback
  • IT Chargeback
  • Subscription Sales Revenue Distribution
  • Asset Rental and Leasing Profitability

Read about the benefits each one of our RDS solutions can provide to you below.  Contact Us to see a demo and discuss our quick start process.

Transfer Pricing

Business Case Points Covered

  • Tax savings opportunities
  • Royalty payment calculations
  • Semi-finished goods transfer policy
  • Intangible assets policy
  • Management fees and shared services policy
  • Financial transactions policy
  • Financial compliance for reporting and tax assessment

Address Pain Points

  • Global tax inefficiencies and poor working capital forecasting
  • Inability to defend transfer prices resulting in tax compliance issues
  • Difficulty in auditing transfer price calculations
  • Manual, labor intensive transfer price setting process

Cost to Serve

Business Case Points Covered

  • Shared service costs
  • Transportation and warehousing costs
  • Customer support costs specific to each customer
  • Payment handling costs for each customer
  • Returns and service quality issues for each customer

Address Pain Points

  • Approximation of cost to serve skewing customer acquisition decisions
  • Growth in certain markets providing negative contribution margin
  • Use of an average cost to serve cost rather than knowing the value for each customer, customer segment, region, etc…
  • Inability to isolate cost attributes such as means of transport, product mix, delivery complexity, and other factors in understanding customer acquisition strategies

Customer Profitability

Business Case Points Covered

  • Understand customer profitability with all costs, not just gross margin
  • View impacts of sales incentives, discounts, and customer service costs on profitability
  • Understand full customer life-cycle profitability by including acquisition costs and setup costs

Address Pain Points

  • Customer value is measured at gross margin and does not account for indirect costs, discounts, or sales incentives
  • Customer service costs based on touch points, buying patterns, returns, etc… are not attributed to specific customers
  • Sales and marketing costs for customer retention and acquisition are excluded from overall customer profitability
  • Sales incentives, advertising, and promotions within regions are not attributed to the targeted customers in the specific regional market

Product Profitability

Business Case Points Covered

  • Understand product profitability with all costs, not just gross margin
  • View impacts of sales incentives, discounts, and product development costs on profitability
  • Understand full product life-cycle profitability by including development, launch, maintenance, and shutdown costs

Address Pain Points

  • Product value is measured at gross margin and does not account for indirect costs, discounts, or sales incentives
  • Difficult to understand profitability of product extensions or bundles
  • Product service costs based on touch points, buying patterns, returns, etc… are not attributed to specific products
  • Product development and product management costs are not included in specific product profitability
  • Sales incentives, advertising, and promotions within regions are not attributed to the targeted products in the specific regional market

Customer and Product Profitability

Business Case Points Covered

  • Understand customer and product profitability with all costs, not just gross margin
  • View impacts of sales incentives, discounts, and product development costs on profitability
  • Understand full product life-cylce profitability by including development, launch, maintenance, and shutdown costs
  • Understand full customer life-cycle profitability by including acquisition costs and setup costs

Address Pain Points

  • Product and customer value is measured at gross margin and does not account for indirect costs, discounts, or sales incentives
  • Difficult to understand profitability of product extensions or bundles
  • Product and customer service costs based on touch points, buying patterns, returns, etc… are not attributed to specific products
  • Sales and marketing costs for customer retention and acquisition are excluded from overall customer profitability
  • Product development and product management costs are not included in specific product profitability
  • Sales incentives, advertising, and promotions within regions are not attributed to the targeted products and customers in the specific regional market

Customer, Product, Channel/Market Profitability

Business Case Points Covered

  • Understand customer, product, and market/channel profitability with all costs, not just gross margin
  • View impacts of sales incentives, discounts, and product development costs on profitability
  • Understand full product life-cylce profitability by including development, launch, maintenance, and shutdown costs
  • Understand full customer life-cylce profitability by including acquisition costs and setup costs
  • Understand full market life-cycle profitability by including setup costs and launch programs

Address Pain Points

  • Market profitability is determined by customer or product roll-up but products and customers cross market boundaries
  • Customer, product, and market/channel value is measured at gross margin and does not account for indirect costs, discounts, or sales incentives
  • Difficult to understand profitability of product extensions or bundles
  • Product and customer service costs based on touch points, buying patterns, returns, etc… are not attributed to specific products
  • Sales and marketing costs for customer retention and acquisition are excluded from overall customer profitability
  • Product development and product management costs are not included in specific product profitability
  • Sales incentives, advertising, and promotions within regions are not attributed to the targeted customers, products, and sub-market in the specific regional market

Manufacturing Cost Accounting

Business Case Points Covered

  • Accurately accumulate manufacturing costs based BOM routings
  • View detailed cost breakdown of costs by cost/profit center, account, manufacturing step, and period
  • View detailed assembly cost breakdowns including detailed component costs

Address Pain Points

  • Calculating added cost to manufacturing based on cost/profit centers used is difficult when including indirect costs for the areas
  • Setup, tear-down, and transition costs are difficult to attribute to components and assemblies
  • Difficult to see detailed cost breakdown within each step by cost/profit center, account, and period

Manufacturing Product Standards

Business Case Points Covered

  • Product standards are evidence based and fully auditable
  • Generation of standards is repeatable and can occur as frequently as needed

Address Pain Points

  • Product standards are generated using multiple spreadsheets
  • Significant effort is required to derive the data, calculate the standards, and perform validation each time
  • Difficult to understand the build-up of standard costs in a transparent way
  • Significant effort and complexity involved for complying with tax test requirements

Bill of Materials Cost and Sales Forecasting

Business Case Points Covered

  • Alignment of sales and production planning
  • Understanding impact of sales forecasts on component volumes and component costs
  • Understanding impact of engineering changes on component costs
  • Increase visibility into:

    • Supplier price changes
    • Supplier sourcing changes
    • Product design changes
  • Make vs. buy decisions

  • Exchange rate fluctuations
  • Understanding impact of production processes for detailed Sales & Operations Planning
  • Handling multiple units of measure
  • Shared sub-assemblies

Address Pain Points

  • Difficulty navigating BOM structures and viewing impacts throughout the cost tree
  • Difficulty viewing common sub-assemblies and common components across end products
  • Difficulty in setting up and maintaining detailed BOM costs
  • Lack of transparency
  • Performance issues and long calculation times

Shared Service Chargeback

Business Case Points Covered

  • Provide simplicity and efficiency pricing chargeback services
  • Create objective transparency and visibility into the chargeback cost and how it was calculated
  • Fairness in distribution of shared service costs to the business areas that utilize it
  • Provide incentives for good behavior by directly linking shared service usage with cost
  • Control costs and manage usage through a repeatable and auditable approach

Address Pain Points

  • Shared service costs are not attributed to the business areas and are recorded below the operating margin line
  • Chargeback costs are based on a flat rate such as headcount
  • Business leaders feel powerless to control a significant part of their indirect cost
  • Projects undertaken with shared service areas for specific customers are treated as special cases

IT Chargeback

Business Case Points Covered

  • Provide simplicity and efficiency in pricing IT services
  • Create objective transparency and visibility into IT cost and how it was calculated
  • Fairness in distribution of shared IT costs to business areas that utilize it
  • Provide incentives for good behavior by directly linking IT cost to usage
  • Control costs and manage usage through a repeatable and auditable approach
  • View IT process by ITIL and/or MOF based activities (or other IT management framework of your choosing)
  • Establish on-demand services cost as well as dedicated system charges
  • Integrate project costs with chargeback rather than treating as special case

Address Pain Points

  • IT costs are based on a flat rate such as headcount
  • Business leaders feel powerless to control a significant part of their indirect cost
  • Project capital funding is time consuming and difficult because no established costs exist
  • Internal IT cost management is disconnected from how business areas are charged for services
  • Budget vs. actual for IT chargeback costs have large variances each year

Subscription Sales Revenue Distribution

Business Case Points Covered

  • Effectively identify revenue acquired at an aggregate level to each service included as part of the subscription
  • Objectively determining how subscription revenue should be allocated to services by each subscription customers usage patterns
  • Provide a clear audit trail and objective approach for revenue distribution when compensation and incentives are based on revenue

Address Pain Points

  • No direct connection between services consumed and subscription purchased
  • Service consumption by customers varies significantly even within the same subscription level
  • Service consumption by a customer varies over time or throughout the year
  • Services are knowledge based, such as financial research, and have no per unit value metric

Asset Rental and Leasing Profitability

Business Case Points Covered

  • Asset acquisition and replacement cost both amortized and cash based
  • Maintenance and storage costs
  • Rental logistics (pickup, delivery, returns, inspection, etc…)
  • Discounts and incentives
  • Receivables and collections
  • Sub-leasing and sub-renting to handle temporary shortage
  • Inventory turns and rental break-even calculations

Address Pain Points

  • Maintenance, consumables, and storage costs for low turn items
  • Receivables and payment policy impact on profitability
  • Delivery or service desk policy impact on profitability
  • True profitability for an asset over its projected lifetime

If you would like to learn more about how Tartan Solutions can help please email us and we would be happy to discuss your business and potential solutions with you.