Practus’ CFO Solutions assisted the automotive company in providing process-wise cost visibility for each of the 5000 SKU’s.

Client NameROIIndustryOwnershipManagementNo. of EmployeesSizeProject Duration
An Automotive Component Manufacturer5x
Public Limited CompanyFamily Managed400$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.

See how Practus can assist you in improving your organization’s Performance