Way before your product is manufactured, sourcing decisions can have a significant effect on the overall cost. Organizations often lack access to detailed cost answers at the pre-production stages which can lead to decisions about products, suppliers, or orders that risk your company’s profits. You must identify ways to protect profits through improved procurement processes, smarter designs for your products, and effective negotiations with vendor and supplier partners. ImpactECS calculates the costs of materials, supplies, and other sourced items for the goods you expect to make.
Calculating product costs is a cornerstone activity for every manufacturing organization, and the best Cost to Make programs bring together the financial and operational data needed to create a clear picture of this critical metric. To establish a modern costing practice, you need processes in place to calculate, maintain, compare and simulate multiple cost versions for every unique way your products are made. ImpactECS calculates the standard, actual, simulated, or estimated costs of your conversion processes, products, valuations, and post-production activities on one connected platform.
The costs of moving products and serving customers is critical to determining the profitability of customers, products, or channels. Cost to Deliver programs give you visibility into the costs of post-production activities like special packaging or shipping requirements, distribution center, transportation, and third-party logistics costs, and the costs of service and support activities. ImpactECS calculates the costs of your distribution and logistics network and associated support activities to unlock the cost drivers through the lens of your products or customers.
Costs of Terms + Incentives are incurred because of the decisions made when marketing and selling your products. You need transparency into the cost of your incentive programs offered by customer, product, or channel to know the real impact of the discounts, rebates, and other trade funding activities. Secondly, you must calculate the real costs of payment terms, returns, and negotiated terms to actively work to shift customer behaviors and enable more profitable relationships. ImpactECS allows you to analyze these costs to improve net profit performance.
The cost data silos that exist within organizations often lead to a skewed understanding of cost performance and ultimately less desirable profit outcomes. An accurate view of profit performance starts with access to detailed and accurate cost data, but it does not end there. You need ways to connect those operational cost answers, with revenue, pricing, and demand information to unlock an end-to-end view of profit performance and determine the true drivers of cost and helps you create a basis for consensus, enable improvement programs, identify opportunities, mitigate risks, and assess progress against your company’s goals and objectives.