The word ‘manufacturing’ conjures up images of collecting a set of materials and assembling them to create a finished product. For food processing, disassembly, or reverse manufacturing, is often the starting point for the manufacturing process. Calculating costs for the disassembly steps is not native to most financial systems, but ImpactECS is designed to exactly mirror any manufacturing process.
In environments where the starting point is one item (a chicken) that is separated into smaller parts (wings, breasts, etc.) and then processed (marinated, packaged), the need for a sophisticated costing system is vital to accurately calculate product costs. ImpactECS can calculate costs for every manufacturing step, analyze yields and variances across lines and plants, and report results to business and operations leaders all in one system.
Raw Material and Substitution Costs
Integrated food processors generally have both internal and external sources for raw materials. With multiple costs for the same starting materials, processors need to calculate blended costs that include both market prices and transfer prices. Also, raw material substitutions frequently occur depending on available raw material inventories can lead to drastic variances in product costs. The flexibility of ImpactECS allows users to make adjustments to raw materials and processes to calculate accurate product cost results.
Food processors are continually valuing their inventories since market prices shift daily for most goods. Automated tools to update market prices and calculate inventory turns are critical components to any comprehensive product costing process. ImpactECS tracks inventory by lots or batches to align product cost with current market values to help sales and marketing teams set prices and close profitable deals with customers.