Cost to Source
Material Resource Planning

At their core, Material Resource Planning processes convert sales or demand forecasts into production plans to determine the materials and labor required to make and deliver your finished goods. Having too many inventory items on hand is expensive, but not having enough can lead to shortages and ultimately to production and delivery disruptions. Enabling a solid materials planning program will improve your ability to unlock the supply/demand balance necessary to limit costs.

ImpactECS offers the ability to enable dynamic materials planning processes that can adjust to shifting market demand, inventory levels, substitution options, and supply chain disruptions. With deeper visibility into the costs of your inbound materials, you can drive informed cost reduction and optimization programs that focus on the real drivers of sourcing and procurement costs.

  • Generate material shopping lists: Calculate quantities and costs of raw materials, commodities, or purchased items based on your sales or production plans (real or imagined) to improve sourcing decisions and create existing and new BOMs.
  • Establish location-based MPR requirements: Determine material quantities based on primary and alternative BOMs and regional requirements and availability.
  • Handle material substitutions or replacements: Maintain replacement and substitution costs to calculate product costs based on the actual materials used.
  • Focus on materials that drive costs: Uncover material cost drivers and establish programs to reduce costs on the items with the most significant cost impacts.

VIDEO: Product Costing and Scenario Analysis with ImpactECS

Knowing the unique cost of each product you make doesn’t have to become a spreadsheet exercise. Learn the questions to consider when evaluating your product costing program, and see the benefits of an integrated product costing platform that connects data and systems with your unique business rules. Then unlock the power of scenario analysis in costing to improve your planning capabilities.

Resources

Harvard Business Review: 7 Lessons on Dynamic Pricing (Courtesy of Bruce Springsteen)

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FP&A Trends: Automation in FP&A: If You Want to Go Far, Go Together

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CFO Magazine: 80% of CFOs Expect Cost Pressures to Persist Into Next Year: Weekly Stat

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CFO Dive: Nearly Half of CFOs Ditching Just-in-Time Supply Chains: Study

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CFO Magazine: A CFO’s Guide to Business Transformation

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Harvard Business Review: 3 Stages of a Successful Digital Transformation

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