Case Study: Hydro Improves Profit Efficiency and Asset Utilization with pVelocity

How pVelocity Helped Hydro Focus on Product & Customer Mix to Improve Profit Efficiency & Asset Utilization

The Norwegian energy and aluminum supplier Hydro faced challenges in analyzing profitability across its operations due to disparate ERP systems and inconsistent reporting methods at its extrusion plants. This lack of a systematic view prevented them from accurately allocating costs to customers or reflecting cost fluctuations in pricing, hampering their goal to shift from volume-driven to value-added markets. To address this, they implemented pVelocity's out-of-the-box profitability and cost simulation software.

pVelocity's solution connected Hydro's various systems and applied one consistent method of analysis to identify profit drivers. The software’s simulation capabilities enabled managers to project the effect of strategies and apply realistic pricing. By using pVelocity to target variable costs and maximize production speeds, Hydro improved profit efficiency and asset utilization, integrating the tool into its day-to-day decision-making and continuous improvement culture.

Hydro

Thomas Baltzewitsch

Chief Financial Officer