Practus’ CFO Solutions assisted the automotive company in providing process-wise cost visibility for each of the 5000 SKU’s.
| Client Name | ROI | Industry | Ownership | Management | No. of Employees | Size | Project Duration |
| An Automotive Component Manufacturer | 5x | Industrials | Public Limited Company | Family Managed | 400 | $50 million | 6 months |
About The Company
LTS Limited is a publicly traded corporation and a significant OEM supplier to the automotive industry, specializing in the production and distribution of high-speed fasteners. The company has been in operation for over 26 years and serves customers in India, Europe, and the United States.
Practus’ Role in CFO Services
- Assist with the establishment of budgetary systems for tracking budgets versus actuals by designing the framework and metrics, and finalizing the templates and formats.
- Establish a solid costing system that includes determining the input/output (yield) for each product line and product, defining cost drivers and standards for each input required in the manufacture of a product, tracking inefficiencies, and identifying overheads that are directly attributable to the product/process or designing a system to allocate overheads across products/processes as needed.
- Implementation of a high-quality management information system (MIS), incorporating management dashboards to aid in business decision-making.
- Examine existing processes, recommend and implement best practices, develop Standard Operating Procedures (SOPs), and recommend and implement necessary changes to strengthen internal controls.
Impact Delivered in CFO Services
- MIS gave Clear view into utilization on a monthly basis and into plant-wise profitability and cash flow contribution/utilization to drive focused decision making.
- Costing system provided process-wise cost visibility for each of the 5000 SKU’s.
- Enabled the business to understand pricing and volume constraints – Costing system helped revisit and reprice key SKU pricing.
- Budgeting framework alignment with the Costing framework improved budget accuracy.
- Enabled periodical Standard versus Actual cost comparisons.
- Documented SOP’s helped in compliances with Internal Financial Controls and Clause 49.