Proliferation of available SKUs can lead to real cost and profitability challenges for your organization. For some industries, introducing and retiring SKUs is a constant activity, driven by changing customer demand, while others have more control over the frequency of SKU changes. Rationalizing your product portfolio – an essential activity that has a significant effect on your profits and drives manufacturing, sourcing, and pricing decisions – is all about balance. Determining the right variety of products requires coordination, information, and agreement between operations, sales and marketing, and product management.
Changes to available SKUs can alter customer behavior, service and support activities, and customer and product profitability. Leveraging ImpactECS to reduce SKU proliferation and analyze and compare SKU cost and profit performance arms you with the information required to decide which products to change, add, maintain, or retire from your portfolio.
Manufacturers all have one thing in common – the need for an effective product costing process that delivers accurate and actionable results. Best-in-class finance teams are catapulting costing and cost transparency to the front of the list of strategic initiatives to transform their leaders’ ability to make decisions. If you’re struggling with the lack of ERP costing capabilities or overwhelmed with spreadsheets, you’ll find value in hearing how leading manufacturing companies have established robust product costing processes.
Check out this discussion around the three focus areas for product costing – Highlighting the benefits of a strong costing culture, the role of costing as a competitive advantage when identifying opportunities and enabling strategies, and starting on the path to better costing by defining the rules, tools, and data involved.