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Profitability & Cost Management Cloud Service

Case Studies

About Manufacturing Company

KPI's client is a multi-billion dollar global manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products.


  • Oracle Hyperion KPI Partners

Business Needs

Manufacturing companies are challenged with improving product and customer profitability. the client, a multi-billion dollar, a global manufacturer of labelling products, faced the following challenges in determining and improving the profitability of their products and key customer relationships. They had to determine how to:


  • Allocate scrap costs down to a particular customer/product combination
  • Allocate raw material costs for raw materials that were used to produce multiple products
  • Allocate outbound and inbound freight costs
  • Allocate customer rebates at the product level
  • Allocate vendor rebates across products and then to customers
  • Deal with multiple plant scenarios: Allocate costs where one plant begins the manufacturing process and another plant completes the process

Learn how client used Oracle Hyperion Profitability and Cost Management Cloud Service (PCMCS) and KPI Partners to overcome these challenges and improve product and customer profitability. This solution also is business user-friendly and allows business users to change allocations and key profitability drivers as business conditions change.


Selection Process

The client evaluated several allocation applications and selected Oracle Hyperion PCMCS because it was user-friendly, cloud-based, and could be managed by the business.

The client selected KPI Partners instead of a Big 5 consulting firm because of KPI's deep expertise in PCMCS, a combination of financial and technical knowledge and lower cost, and a shorter implementation timeline.


What KPI Delivered

KPI Partners analyzed the current allocation process and built a new allocation engine using Hyperion PCMCS best practices with data sourced primarily from Oracle EBS. Hyperion PCMCS is integrated as part of the monthly close process and largely automated. The allocation model allocates both fixed and variable costs at the customer and product level. The project was delivered on time and under budget


"I wanted to thank you for all the assistance you provided to the PCMCS project; it would not have been successful without your contributions!"

Chris J | Sr. Business Intelligence Analyst


Business Benefits

  • Transparent allocations
  • Owned by business, not IT
  • Automated
  • Fits existing business process and adapts to future needs


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