Product category:
Production costing and estimating
News Release from: aPriori | Subject: Cost Management Platform software
Edited by the Manufacturingtalk Editorial
Team on 13 September 2006
A 1% decrease in cost of goods raises
income 30%
Discrete US part manufacturers are experiencing a demanding and difficult combination of price pressure from customers, but a 1% cut in cost of goods sold raises 16-30% income rise.
Discrete part manufacturing companies in the USA are experiencing a demanding and difficult combination of price pressure from customers, rising costs both internally and from vendors, international competition, and income growth pressure from investors Cost of goods sold (COGS) has become an increasingly important metric as the largest expense item on the income statement; typically 70 to 90% of revenue
This article was originally published on Manufacturingtalk on 19 Dec 2007 at 8.00am (UK)
Related stories
Cost management software to cut costs
A global manufacturer of agricultural equipment and related replacement parts has selected cost management platform software to provide visibility into product costs from design to manufacturing.
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.
According to Frank Azzolino, president and CEO of aPriori, "This forces companies to focus on product cost and profit margins with renewed vigor.
Manufacturers are forced to operate under net margins of only a few percent.
A 1% decrease in COGS can equate to a 16-30% increase in net income in many discrete manufacturing companies." Providing innovative cost management solutions to the discrete manufacturing industry enables manufacturers to better understand product cost decisions early and throughout the product lifecycle.
Further reading
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.
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.
Visibility offered for 'cost-critical' decisions
'What if' cost trade-off analysis from component to assembly to product to production facility level is available with cost management software patform for discrete manufacturing industry.
This unique Cost Management Platform empowers manufacturers to lower COGS, provides real-time visibility to 'cost-critical' decision information, and builds critical cost knowledge to go on the business 'offensive'.
Companies can now assess, control, and reduce cost of goods sold by whole percentages.
In the September issue of 'Advanced Manufacturing', aPriori's COGS reduction is profiled by manufacturing journalist Thomas R Cutler.
The aPriori v4.0 Cost Management Software Platform provides real-time, predictive cost assessments throughout the entire product development and delivery process.
aPriori v4.0 enables designers and engineers, manufacturing engineers and planners, purchasing and sourcing professionals, cost managers, and program/project management to make better decisions to reduce, avoid, and recover product costs.
aPriori's solutions enable manufacturing companies to measurably reduce their COGS by whole percentages by identifying quantifiable savings in material, tooling, labor and overhead while evaluating alternative designs, manufacturing processes, and vendor sources.
* 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 patented cost management platform allows companies to assess, contr! ol, and reduce cost of goods sold by whole percentages.
The aPriori Platform truly enables 'Cost Knowledge Before it Matters'.
The aPriori company has customers in a variety of industries including High Technology, Industrial Equipment, Automotive, and Heavy Machinery.
Recent customers include John Deere, Panasonic, Thomas and Betts, Flextronics, JLG, and Dana Corporation.
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