Nampak Tissue Implements River Logic’s Cost-to-serve Solution

Nampak Tissue, a division of one of the largest packaging companies of metals, paper, plastics, and glass based in South Africa, has selected a module of River Logic’s Cost-to-Serve (CtS) Planner to improve internal processes to reliably predict the impact of business decisions on total system costs.

At each step in the supply chain process, Nampak will use the CtS Planner module to secure cost information at the product/product family level. Rapid what-if analysis will allow it to test various costing and supply scenarios, and via reporting, unit costs can be analysed and compared to determine opportunities for profit optimisation and product rationalisation. The solution will also provide a means for Nampak to validate and update costs that are driven by its enterprise resource planning (ERP) system for operations and financial functions.

“With the ability to do cost comparison between various manufacturing processes and sites, Nampak can allocate manufactured goods to the most profitable supply stream. Additionally, with the solution’s rapid what-if capability, we can test the effect of price and cost increases. We’ll be able to analyse the impact of changes by viewing our financial statements, in particular the income statement, which will show the net effect on our bottom line,” said Rizwan Hassen, business director of Nampak. “In the past, financial analysis of the business as a whole was awkward and time-consuming. Now, we’ll be able to rapidly complete a variety of analyses, including at the plant or at the customer level.”

River Logic is delivering this lighter version of CtS Planner through its international distributor partner, Business Modelling Associates (BMA).


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