The use of activity based costing applications has been around for many years. However, for large companies, its use has been limited to one-off analysis or off-line charge back cost determinations. As companies began recognizing the returns from investments in ERP, supply chain, and other financial systems over the last few years, more and more are using these vast stores of data to drive activity based costing on a grand scale.

The most practical way to perform large scale ABC is through automation of processes and integration of an ABC application in the process. Tartan Solutions has worked on large scale integration of ABC into enterprise wide profitability systems. It is a complex and tightly integrated process that requires clear understanding of systems architectures, ABC model architectures, and especially the need to differentiate parts of businesses using different models. The planning of a large scale implementation of ABC requires a holistic understanding of how the data is gathered, its meaning, how it differs throughout the enterprise, and how the results are going to be used. The planning process by its nature should include technical and functional resources throughout. We believe correct key design decisions upfront can save enormous money and resources during the build, pilot, and implementation phases. Bringing a holistic understanding of the overall program enables Tartan Solutions to provide insight where neither a technical vendor nor a management consultant can.

If you would like to learn more about how Tartan Solutions can help please contact us and we would be happy to discuss your business and potential solutions with you.