Product category:
Production costing and estimating
News Release from: aPriori | Subject: Cost Management Software Platform
Edited by the Manufacturingtalk Editorial
Team on 24 February 2006
Cost management platform finds 34% COGS
reduction
The cost of goods sold in manufacturing can be as much as 70-90% of revenue, and users of a cost management software platform have documented up to a 34% in cost of goods sold reduction.
While credited with bringing much-needed productivity improvements to the discrete manufacturing industry, existing MCAD, PLM and ERP products are primarily focused on the promise of soft savings such as time to market, productivity and process improvements, and other operational efficiencies Unfortunately, the direct benefits from these technologies have been difficult to measure and quantify and are considered by many to be the next in a long history of undelivered promises
This article was originally published on Manufacturingtalk on 24 Feb 2006 at 8.00am (UK)
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Real-time, predictive cost assessments provided
A cost management platform brings much needed innovation to the discrete manufacturing industry by providing real-time, predictive cost assessments throughout the product delivery cycle.
Measuring reduction of cost of goods sold
Realising hard savings is only possible if discrete manufacturing companies can satisfy today's demand for a direct and measurable reduction of cost-of-goods sold using effective software.
In today's business climate, companies can no longer settle for the promise of soft savings and must demand quantifiable, verifiable and predictable ROI.
Realising hard savings is only possible if discrete manufacturing companies can satisfy today's demand for a direct and measurable reduction of COGS.
According to Frank Azzolino, President and CEO of aPriori, "Our customers have documented up to a 34% COGS reduction." As discrete manufacturing companies experience increasing price pressure from customers, rising supplier costs, overseas competition, and income growth pressure from investors, they are forced to scrutinise product margins and cost of goods sold (COGS) with renewed vigor.
Across a variety of market sectors, COGS are typically as high as 70-90% of revenue.
The ability to directly reduce COGS presents the opportunity to significantly impact a company's bottom line.
According to a recent industry analyst report in which 150 of the top US manufacturing companies were surveyed, cost estimation and control were identified as management's number one concern.
* About aPriori - based in Concord, Massachusetts, USA, aPriori is the technology leader providing innovative cost management solutions to the discrete manufacturing industry.
aPriori's Cost Management Software Platform enables manufacturers to better understand product cost decisions early and throughout the product lifecycle.
aPriori's Cost Management Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to 'cost-critical' decision information, and builds critical cost knowledge to go on the business 'offensive'.
aPriori's patent-protected cost management platform allows companies to assess, control, and reduce cost of goods sold by whole percentages.
The aPriori Platform truly enables 'Cost Knowledge Before it Matters'.
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