Pipelife

Pipelife International GmbH

Watch video
Listen to Grigorios Tzavelopoulos experiences of working with Prodacapo.

A valuable business experience

Pipelife, a leading supplier of plastic pipe systems, is implementing Prodacapo to establish a successful and long-term growth. By running Prodacapo they now have a more accurate costing tool and a deeper understanding of how to improve the profitability.

 

"Prodacapo ABM provides us with an essential basis for making business decisions," says Greg Tzavelopoulos, Head of CPM at Pipelife.

 

Pipelife decided to implement activity based costing (ABC) to get one and the same financial controlling solution in the group. They also wanted a reliable tool to measure and understand profitability in order to improve the product and customer result in the long term.

 

Prodacapo provides the Pipelife management with crucial input to their corporate business decisions and enables them to benchmark process costing among the subsidiaries. It also helps the subsidiaries to understand how to control the profitability.

 

A roll-out in 27 countries

An internal ABC expertise team was established to lead the ABC project and to roll out Prodacapo at the subsidiaries in 27 countries. Greg Tzavelopoulos, Head of CPM, was appointed as team leader with Evelyn Gakii at his side. The team operates as a competence center both technically and strategically.

 

"We learned a lot by working closely together with the consultant representing Prodacapo. He has been very professional and has exceeded all our expectations. He added value from several perspectives", says Greg and continues:  

 

"Implementing activity based costing is really interesting and not as complex as I thought it would be. All subsidiaries use the same ABC model and database."

Critical success factors

"The most critical success factors for a successful ABC implementation are staff engagement, technical and functional expertise and an efficient implementation process. Staff engagement is very crucial as the ABC analysis requires information and knowledge from different departments (finance, sales, HR, etc.)," says Greg and continues:

 

"By minimizing the administrative work load for the controllers, clearly communicating the vision of the project and explaining why you are implementing ABC and what results one can expect, you will get a stronger engagement and a positive attitude to the costing project."

 

User-friendly software

"The Prodacapo software not just fulfills our technical requirements, but also enables us to get a deeper understanding of the profitability", says Greg.

 

"I like the flexibility in the Prodacapo software and I find it very easy to use even though you are not very technical. It didn't take me long to understand how to use it. I like the user friendly interface, the structure and the icons that direct me to the information I am looking for. The structure in Prodacapo gives you a complete view of your costing model. It lets you view the costs from a new perspective. The graphical overview has helped us to understand the model structure", says Evelyn Gakii Ireri.  

 

 

“Prodacapo ABM enables you to analyze data from a point of view you have not thought of before."

Niels Rune Solgaard-Nielsen
CEO, Pipelife International

Basis for business decisions

Prodacapo enables Pipelife to get an overview of what product groups and areas to focus on, what areas that are already working properly and where corrections are needed. As a result, one of the production units has already looked over their component suppliers, negotiated new agreements and changed their less profitable production line to make it more profitable.

 

"Prodacapo ABM has given us a more complete picture of the product and customer profitability. By mapping our activities we also got a better understanding of what is going on in the company. We have identified non-value added activities and we have started to review them frequently to increase our productivity. Prodacapo provides our management with a detailed tool for decision making," says Stefan Sjöberg, controller at Pipelife, Ljung i Sweden.

A valuable business experience

"Running Prodacapo ABM is the most valuable business experience I have had so far. With 27 countries in the group and more than 10 local ERP systems, it's very challenging for the top management to make business decisions. Prodacapo ABM gives us access to appropriate business data (not just operational data from the ERP systems) and a financial controlling solution with reliable result.

 

We now understand what is already working efficiently and how we can improve to develop our business. We have got a deeper understanding of what is driving profitability and we have already started to take actions to improve our results.

 

Prodacapo has provided us with new insights and an extensive cost control. It's now time to take action, to improve our less efficient operations, benchmark our subsidiaries and to change some of our business behavior. And of course - to focus on our most profitable areas," concludes Greg.

 

What our customers say

"Implementing Prodacapo was a strategic decision we made to respond to the new market conditions for the healthcare sector in the Netherlands."

 

"At the early phase of the project, some of the departments were quite hesitant in participating, but as soon as we were able to present the first results of our project the doubtfulness was replaced by enthusiasm."

Niek Bossché & Paul Steinbush
Erasmus Medical Centre, The Netherlands

 

 

"Prodacapo provides us with great information and more precise patient costing data."

 

"It's also very important for us to compare and analyze on different levels and in between different departments. Prodacapo gives us better management information of for example resource consumption per patient treatment."

Reidun Martine Rømo

Ekonomichef, Helse Midt-Norge

”Using Prodacapo's TDABC methodology (Time Driven ABC) means we have got a an easy-to-use costing tool, a costing model that is easy to understand and a unified method to track the patient level costs.”

Roland Ylander
Head of patient level costing, County council of Jämtland, Sweden

Erasmus MC
Helse Midt Norge
Jämtlands läns landsting