Fax: 01543 444333
Lincoln House
Wellington Crescent
Fradley Park, Lichfield
Staffordshire WS13 8RZ
UK
The Problem
In today's competitive world a steady state position is a thing of the past. Analysing costs when supplying a multitude of specifications to a variety of customers can often leave processors guessing their margin. The tracking of credit back values such as trim or waste needs to be considered, whilst the impact of promotional activity, price adjustments, NPD and specification changes leave little time for cost analysis before the event transpires.
The Solution
Our Margin Manager calculates the product costs dynamically. The application uses a hierarchal structure to include prices from the initial raw material through to multiple finished products, incorporating each stage of the processing flow. Credit back values, ingredient prices, packaging prices and product specifications are simply imported, allowing the processor to view existing price and cost, matched to actual sales and forecast sales volume. Additional specifications of costing models can be created in a nominal amount of time.
The Result
The system presents individual product margins by product and product group. The margin manager allows the processor to view sales price, costs and margins with actual or forecast sales volume, which gives the overall weighted average margin of the business, weighted average margin by customer and product group. The system allows finger tip manipulation of the margin. When negotiating prices and in particular promotional activity it gives a total understanding of the implications on the overall margin.
Major Benefits
- Dynamic understanding of Product Costs and Margin
- Finger tip control of Margin changes
- Useable tool for price negotiations
- Understanding of top and bottom performing customers
- Understanding of top and bottom performing products
- Increased profitability
Cost Update Automation
Keying in the updated prices for your raw materials can be a timely excersise. Additionally, innaccuracies can creep in when manually keying in these prices each week. With this in mind we have developed an additional add-on service which will automatically poll for the presence of a simple file containing the product codes and prices and import them into the system at a given time saving you the hassle of having to do this.
Goal Seeking
One of the most powerful features of the Cost Modelling and Margin Manager systems is that it is possible to reverse engineer your costs based on whatever goal (in terms of sales or profit margin) you are looking to achieve. The application will allow you to key in either a target margin and see the sales price needed to achieve it, or key in the sales price and see what margin will be achieved. This can be done against weight and against price for an individual or a selected group of products. Having this sort of power at your fingertips is not only informative but will also save you hours working these figures out in spreadsheets.