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Extending the benefits of financial planning and analytics beyond the finance department
Technology Category
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Real Time Analytics
Applicable Functions
- Discrete Manufacturing
- Procurement
Use Cases
- Predictive Maintenance
- Manufacturing System Automation
Services
- Data Science Services
The Challenge
Kruger Inc., a diversified Canadian industrial products company, embarked on a project to enhance budgeting and forecasting in its containerboard division. The company realized that analytics could also help to drive operational efficiencies for the business. For Kruger’s containerboard division, 80 percent of costs relate to the raw materials required to manufacture its products. Controlling these costs requires a highly efficient forecasting process – as well as an efficient production line. The company needed a solution that could provide deep insight into both financial and operational data to meet these challenges.
About The Customer
Kruger Inc. is a diversified Canadian industrial products company, active in sectors such as pulp and paper, tissue products, containerboard and corrugated packaging. The company has also become a major provider of renewable energy, wines and spirits, recycling services and biomaterials. As a diversified manufacturing business, Kruger’s success depends on managing orders, raw materials and production as efficiently as possible. In recent years, Kruger’s finance team has invested in analytics tools to help it to control costs and maximize profitability. It uses IBM® Cognos® Controller for fast, accurate financial consolidation, and IBM Cognos Disclosure Management for standardized financial statement reporting.
The Solution
Kruger worked with Globalsult, an IBM Business Partner and analytics specialist, to build a new budgeting process using IBM Cognos TM1® software. The solution provides deep insight into demand trends, product performance and materials costs. It also enables “what if” analysis of exchange rates, which can have a significant impact because Kruger imports raw materials and exports products across the Canada-U.S. border. During the project, the containerboard division also requested a new tool for analyzing orders by customer and by salesperson, and understanding which orders were assigned to which machines on the production line. Cognos TM1 was an ideal platform for this tool, and Globalsult was able to deliver it quickly.
Operational Impact
Quantitative Benefit
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