Pulp and Paper Industry
The EPS Cost Management Suite is designed for the pulp and paper industry with numerous functions and features developed for its specific cost management needs. The EPS Cost Management Suite has three modules: EPS Real-Time Costing, EPS Product Cost Management, and EPS Transportation Cost Management.
The EPS Real-Time Costing module empowers paper machine operators to be the first line of defense against inefficient and costly production practices. EPS Real-Time Costing accomplishes this by providing machine operators and production managers with immediate feedback on how their decisions impact the cost of the paper reels being produced.
EPS Real-Time Costing can be implemented as a stand-alone module or in conjunction with one or both of the other two modules in the EPS Cost Management Suite.
EPS Real-Time Costing can be implemented in just four to eight weeks per paper machine, providing payback as quickly as one to three months.
The EPS Product Cost Management module has pulp and paper industry specific functionality for:
- Recipe and grade specification management
- Standard grade costing
- Actual grade costing
- Short-term cost and consumption forecasting based on block schedules
- Long-term cost and consumption forecasting based on sales forecasts
EPS Product Cost Management supports pulp and paper companies to harmonize their cost management process to ensure that costs can be compared across mills. The module also improves the accuracy, timeliness and increases the level of detail in the grade costing to better support production planning, financial forecasting, and product sourcing decisions. Significant time and resource savings during the monthly closing process and during the yearly budgeting process can be expected after implementing this module.
The EPS Transportation Cost Management module helps transportation and supply chain managers to gain control of the transportation costs. The module makes it possible to budget freight costs, monitor the effects of transportation decisions, and track cost variances.
EPS Transportation Cost Management is based on an innovative accounting concept developed specifically for the needs of pulp and paper companies. The module responds to pulp and paper companies' needs for systematic cost planning and control tools to combat escalating transportation costs.
EPS Transportation Cost Management administers the mix of factors that drive supply chain planning and control decisions, and it provides precise measurements of how specific components of the transportation cost mix affect the overall budget and forecast.
To effectively control transportation costs, EPS Transportation Cost Management examines key cost drivers including: destination mix, source paper mills and warehouses, transportation routes, modes of transport, carriers, freight rate, fuel surcharges, and exchange rates, among others.
EPS Transportation Cost Management helps pulp and paper companies to identify and explain factors that are at variance with expected levels as a first step to reduce transportation spending and increase effectiveness.
For more information regarding the EPS Cost Management Suite for the pulp and paper industry, please contact us today!
