One comprehensive view of production, sales and profitability
Delivering a trend analysis solution for the whole group.
An innovative management reporting solution providing a holistic view of the total group enabling better decision-making, enhanced enterprise contribution and improved stakeholder confidence.
production units
employees
model of the business
The challenge
The Setra Group is one of Sweden’s largest producers of eco-certified wood products in pine and spruce for building construction and interiors. They have 800 employees and consists of eight production units in Sweden and six foreign sales companies. Exports account for around 60% of its sales and their main export markets are Europe, China, North Africa, the Middle East and Japan. Total annual sales amounts to SEK 5,9 bn.
In response to changing market conditions, the Setra Group management needed an early warning system to enable rapid identification and response to adverse trends and emerging risks in different areas of the business. This included a comprehensive overview of the purchase prices of timber, production volumes and the development of inventory, sales prices and sales volumes. As the business results are greatly affected by currency changes, the analysis of exchange rate effects was also of great importance.
“Time can now be devoted to forward-looking analyses and an active dialogue with managers.”
Stefan Lundin, Former Setra Group CFO
The solution
Metapraxis Nordic was commissioned to conduct a project to provide analytical insight to the group management and the sales and production management. In order to create a holistic view of the total group we created a business model covering financial and production efficiency, including raw material pricing, production efficiency, sales and market development. At group level, the model includes profitability, cash flow, operating capital development and the results of competitors.
The business model integrates data from many different sources, including data warehouses and financial systems, but also sources of competitor data. Analytical dashboards populated with this data provide managers with answers to their key questions about the current and likely future performance of the business.
When we started this project each part of their organisation had their own data source and it was difficult for the group management team to get an overview of their current situation. With the Empower solution the group management team and all parts of the organisation got a total overview of both their current situation and their future trends in all aspects of the company.
Alf Henricsson, Metapraxis Nordic AB
The impact
Enables better decision-making: the Empower business model and dashboards provide performance insights to all decision makers from group management to production and sales management. Integrated management information is instantly available in reports and charts with associated analysis to every single business area and factory.
Enhanced team contribution across the enterprise: the management team is in better control of the business and able to effectively manage the achievement of year-end profit and cash targets.
Improved stakeholder confidence and buy-in: as the main focus is on analyzing the future direction of the business, decisions of actions agreed upon are taken earlier. The senior management team have increased their trust in the insights produced.
About Setra
The Setra Group is 50 percent owned by Sveaskog (a Swedish state forestry company) and 50 percent by forest owners’ association Mellanskog.