ABC Cost Workshop in Distribution, Sales, Retail Trade

Workshop Objective

Participants acquire knowledge of an analytical methodology focused on the analysis of distribution, sales and storage costs, marketing, supermarkets, convenience stores in order to identify opportunities for cost reduction, increased profitability and process improvement, solving a practical case of a segment of their organization in MS Excel.

Distribution and Sales Costs, Marketing, Storage, Logistics

Currently, the marketing and sales industry faces serious pressures, so it is vitally important to know precisely the costs of distribution, logistics, sales to ensure profitability in all channels and customers served.

Benefits of Activity-Based Costing

The methodology generates accurate cost information based on the activities carried out by the organization. The analysis and use of information allows you to easily detect and capture opportunities for:

    • Cost Reduction
    • Improvement of the efficiency of processes and activities
    • Analysis of utilization and capacity of activities
    • Profitability Analysis
    • Analysis and optimization of product portfolio by client
    • “Activity-Based” Budgeting
    • Determination of Management Indicators

Knowledge Transfer / Syllabus

The ABC Costing in Distribution and Sales course focuses on participants:

  • Knowing the methodology of activity-based costing – ABC in their different modalities: Push Model, Pull Model, Time Driven ABC.
  • Prepare the accounting and resources to include in the ABC Costing.
  • Learn techniques for surveying Activities and Processes.
  • Identify the cost objects: clients, products, channels, business segments for which it is required to know real costs and their profitability.
  • Determine drivers for cost allocation.
  • Integrate profitability.
  • Learn how to analyze ABC information to reduce costs, improve processes, increase profitability, make budgets.
  • Determine key financial and non-financial performance indicators.

Practical Case and Example of ABC Costs in Distribution and Sales

Participants must bring computer equipment since they will be provided with Excel files to perform the costing of a practical case of Logistics, Distribution and Sales.

ABC Cost Model

An ABC cost model represents all operational areas of the organization, involves accounting (recorded costs and expenses) and the business segments to be costed (products, product families, regions, customers, branches). We suggest starting with a pilot model when there are many products or SKUs. If required, we have different ABC Cost software that allow you to have a formal system for Costs and Profitability for your project. A model contains the operational structure. On the model, the data changes period by period and therefore the results obtained by the organization.