Product Costing & Pricing
Our integrated suite of costing process address all areas of the companies’ cost management by quickly and easily transform the data exists within the company into accurate and actionable product cost and profitability analysis information to be used as key strategic asset.
The major advantages obtained from BPO7’s product costing and pricing process outsourcing are:
• Enable the comparison of actual costs and profitability with standard and projected costs and profitability.
• Ability to identify the core and most profitable products, thus assist you in optimizing product and customer mix, while at the same time define where non-value added processes, by-products, waste and unused capacity costs that erode profitability.
• Provides information of machine set-up times, operating times and down times, as well as including storage and transport costs of finished products to deliver a comprehensive statement of how a product is manufactured and its end-to-end supply chain costs derived.
BPO7’s activity based costing process allows the organization to define precisely how activities and resources required, in terms of units of time and quantity, are consumed at each stage of the production process. This enables the company to obtain the most complete picture to date of the accumulated costs of each product as it progresses from primary materials through to packaged finished product and final delivery to the customer.
Our costing process also has simulation components to analyze instantly how changes to prices and operational efficiency impact cost and profitability. The whole product development and distribution process can be modeled to maintain rolling budgets and forecasts and deliver prime information needed for key commercial decisions and strategies which improve the operational business performance.
BPO7’s profitability analysis process outsourcing provides a close-up view of how each product, customer and resource element is generating profit and revenue for your business, thus proactively steer the company by margin due to identification of your core, most profitable products and customers.
Our profitability analysis process simplifies the accurate budget and forecast of future profitability by using fast track substitutions in 'What If' scenario planning components where we can simulate the profit and revenue impact of changes to sales prices and product mix, changes to the cost of materials consumed, wages and overheads.