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Reda transforms Cost Management and Profitability Analysis in collaboration with Reply Consulting
Oracle EPM Cloud and Reply Consulting,
the idealpartners for multidimensional
marginality analysis.
How to manage product costs in a quick and reliable manner
Reda, a leading Italian company in the production of merino wool fabrics, made the strategic decision to rely on Reply Consulting’s extensive experience to design and implement its Cloud-based management control system. Reda was looking for a Cloud solution that would help the company optimise costs, eliminate upfront investments, and guarantee lower development timeframes, thus allowing it to face the complex challenges of a constantly evolving scenario.
Reda needed to be able to define a new model for managing and determining product costs, supporting business decisions that would guarantee the reliability and quality of the results, integration with its existing systems (finance and operations) and reduced closing times.
The Cloud to support Profitability and Cost Management
Reply Consulting supported the customer in the design phase of the management control model and the allocative model, as well as subsequently guiding the system implementation phase. The solution, based on the Oracle Profitability and Cost Management Cloud Service (PCMCS), enables Reda to:
Automate
Automate the data loading process by means of the EPM Automate tool
Manage
Accurately manage the cost allocation model for determining product costs
Develop
Develop a profitability analysis by line of business
Produce
Produce an operating income statement at cost of sales
Calculate
Calculate different versions of product costs
Make optimal
Make optimal use of the inventories available at an effective weighted average cost
Reconcile
Automatically reconcile the operating income statement and the statutory income statement
An optimised operational closing process
Thanks to Oracle EPM Cloud, Reda was able to speed up its operational closing process.
Reda is now able to manage its operational closing process in an integrated and automatic way, as well as in shorter timeframes. The customer has also benefitted from considerably increased quality and better traceability, as well as an advanced reporting capability accessible both from the web and through the Smart View add-in for MS Office, which allows users to create reports in self-service mode. Thanks to Oracle EPM Cloud, Reda was able to speed up its operational closing process.
The adoption of a Cloud-based tool also enabled users to spend more time checking and analysing data, while almost completely eliminating the time-intensive activities relating to data production and updating of the allocation model. Reply Consulting has made it possible to reduce design and implementation timeframes, thanks to its valuable skills in cost control and allocation models, its knowledge of the textile sector and its expertise in Oracle EPM Cloud.
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For over 150 years, the Reda Group has been synonymous with the pursuit of quality and continuous innovation, with a focus on making the superior quality of “Made in Italy” its strong suit. Reda operates as a full-cycle Italian wool mill, one of the very few wool mills in the world that produces high-end fabrics, starting from the processing of raw wool, which are then sold all over the world. In recent years, the company has innovated its range of products by joining the historic Reda 1865 division (with which it markets classic fabrics), the Reda Active division (which produces high-performance fabrics) and the Reda Flexo division (which produces smart stretch fabrics). The company has also launched the Rewoolution division and brand, through which it creates its own line of activewear.
Reply Consulting
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Reply Consulting is the Reply Group company specialised in Management Consulting services. For its customers, Reply Consulting carries out the role of ensuring the integration and coordination of the various functional and technological aspects, guaranteeing an inter-functional approach, optimal consulting methodologies and production capacity. Reply Consulting’s distinctive skills focus on the strategic management of the product/service-customer portfolio, providing solid support to the client company’s competitive positioning and implementation of the Business Plan; IPO services, supporting companies in the process of listing their shares on the markets organised and managed by Borsa Italiana; Corporate Governance, Risk & Compliance; definition of the ICT strategy; design and implementation of organisational structures and processes focused both on business process improvement and cost reduction.