Service units in corporations are often confronted by the question: how is it possible to arrive at acceptable service prices for (internal) clients and simultaneously allocate costs appropriately? It quickly becomes evident that this question is not just a brainteaser for bored controllers, but is crucially important in managing the profitability of a company. We show you ways to achieve transparency.
Many service units in corporations, from IT through to purchasing, find themselves caught every day between the management-driven implementation of strategic projects and the financial expectations of the internal client to whom the service is charged. An essential requirement for a sustainable balance between these interests is a high level of cost transparency so that the right incentives can be set. With our many years of experience, we will be happy to help you analyze and optimize your cost allocation system.
- Strategic targets set for the service units by corporate management are in many cases a priori out of line with existing cost planning and allocation models.
- Internal clients often have their own cost reduction targets, which exert a great deal of pressure not only on external suppliers but also on internal service units in particular.
- Even without cost reduction objectives, internal cost allocation prices often meet with little acceptance from internal clients because of a lack of cost transparency and allocations that are difficult to fathom.
- Intero Consulting supports you with analysis of the costs incurred, identification of cost drivers and proper allocation to various services.
- On this basis, we determine appropriate target prices for your services, while taking additional account of external factors (e.g. tax effects with international cost allocation).
- We also support you in preparing to communicate the cost structure and pricing model to internal clients and top management.
- The newly acquired transparency in cost drivers and cost structure gives you precise control and the ability to prioritize existing resources appropriately.
- Increased acceptance by management and clients leads to appropriate targets and a reduction in outstanding accounts, so that the service can be at the center of what you do once again.
- The optimized cost allocation structure makes it possible to charge competitive prices and make the service more attractive.