Starting Points

Industry: Prodacapo product: Solution in brief:

Grocery wholesale and retail Prodacapo ABC/M Store and product category profitability analyses

More profitable with Prodacapo

About

ICA is an integrated food retail and wholesale group, part of the global Ahold group, with 4,600 stores and sales in excess of USD 14 million.

Challenge

The food retail market is highly competitive. Competitors are continuously sharpening their businesses to lower costs and prices. That's why ICA reorganized in order to focus on profitability and new store concepts. The change demanded a more detailed profitability analysis. ICA needed to know the net profitability margin for both stores and product categories.

Solution

ICA has integrated Prodacapo's solution for Activity-Based Costing/ Management with their Oracle solution for sales, logistics, finance and data warehousing. The ABC information is updated every quarter.

Results

ICA uses Prodacapo ABC/M to manage profitability per product category and store concept. The ABC income statement is used by 15 controllers and around 50 managers. The ABC information has also been used for more strategic purposes than first intended. The next step is to use the information for improvement of certain processes.

Learn about the Prodacapo ABC/M software »

"By using Prodacapo ABC/M to continuously analyze and monitor our operations by geographical area, store concept and product category, we gain a competetive edge."   Björn Sjögren Controller ICA Headquarters