In the retail sector Magic Orange has been used to bring cost transparency and cost allocation models to a wide range of shared services including information technology (IT), building services, transportation and logistics. These models have assisted retailers in better managing and understanding their shared cost portfolios.
In another use case, a retail customer needed to create a shared services recharge model so that they could determine an accurate Return on Capital Employed (after recharges) for each of their retail brands. The customer implemented Magic Orange to solve this problem and very quickly brand managers received detailed and transparent bills of shared services with the ability to drill into the granular detail behind their recharges using Magic Orange’s embedded analytics. That way managers were able to easily understand both the volumes and costs behind their charges but also the drivers of these charges.