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Gorilla Glue enhances decision-making with cost and margin intelligence

May 16, 2024 Case Study 2 min read
Gorilla Glue needed to establish and integrate best in-class standard costing and cost-to-serve metrics in a new ERP system. Plante Moran answered their call for guidance.
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The client

The Gorilla Glue Company is a family-owned, internationally recognized manufacturer of premium tapes, seals, and adhesives. In addition to the Gorilla Glue products, The Gorilla Glue Company also owns and operates Lutz Tools and O’Keeffe’s Hardworking Skincare Products.

The challenge

Gorilla Glue recently invested in a new ERP system. As part of that process, it wanted to compile its data into a robust information system to gain greater insights into its customer profitability and overhead costs down to the brand, pillar, and SKU. Additionally, Gorilla Glue wanted to go beyond SKU costing and understand each customer’s cost-to-serve. As Gorilla Glue worked through implementation, it found that the ERP system, as configured and without investment in related data management and visualization capabilities, wouldn’t deliver on these requirements at go-live. To meet the project’s ultimate goal of better and more informed decision-making at the customer level, Gorilla Glue needed a quick solution that would provide the required visibility into product groups, customer accounts, and manufacturing, warehousing, and logistical costs.

The solution

Gorilla Glue contacted us and asked to provide a whiteboarding session to its C-suite regarding key decisions on costing methodology within its newly acquired ERP system. Based on the thoroughness and precision of the whiteboarding session, Gorilla Glue subsequently engaged our team to provide support with calculating costing, labor, and overhead rates and implementing this data into its ERP system. We developed a sustainable and pragmatic model that provided the comprehensive manufacturing cost data Gorilla Glue needed to make more informed operational decisions.

Several months later, Gorilla Glue asked our team to help establish cost-to-serve metrics for various consumer retailers. We brought in our costing, technology, and CPG industry experts to conduct interdepartmental interviews with the Gorilla Glue team to ensure that the desired outcome was understood and cross-functional. We developed a prescriptive approach that provided recommendations for improvement and built a prototype dashboard featuring data visualizations that broke down cost-to-serve into four categories: cost accounting, warehouse management, freight and transportation, and material costs. To successfully execute this project, it was necessary to quickly expand existing and establish new working relationships across the Gorilla Glue organization and facilitate effective dialogue and decision-making across the various stakeholder groups, including accounting, finance, costing, technology, sales and marketing, and various aspects of operations.

The benefit

These projects gave Gorilla Glue a comprehensive and detailed breakdown of its manufacturing, labor, and overhead costs as well as cost-to-serve metrics for individual customers. Because we have worked with this ERP solution extensively in the past, we implemented appropriate functionality according to Gorilla Glue’s requirements. In addition, Gorilla Glue leveraged our team’s expertise and ability to communicate and collaborate with the ERP implementation partner and across its departments to ensure that all aspects of the project initiatives were realized as planned. Most crucially, the scheduled go-live date wasn’t delayed — in fact, we finished two weeks early.

These projects provided Gorilla Glue with:

  • Extra time to begin testing the new methodology within the ERP system.
  • Valuable data that can be leveraged in pricing negotiations.
  • The ability to make more informed decisions regarding product manufacturing and distribution, retail displays, and more.
  • Visibility into its internal operations and costs.
  • The ability to correct issues as they arise and enable continuous improvement.

We brought in the right experts at the right time to meet Gorilla Glue’s needs and foster growth for its business.  

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