Defining the Role of Costing for Manufacturing Leaders: How to Establish a Cost Culture
Summary
ImpactECS helped us establish an adaptable and flexible process so that as things change, we can make those tweaks to calculate costs for new and existing products. The ability to adjust prices and very quickly inform the leadership and others around the company on market effects of the change eliminates surprises. Brent: One question we asked of others in our company was “Do you realize that 90-some-odd percent of what we spend to make our products comes from 20 or 25 GL accounts?” Looking at the breakdown we found only four or five major areas of costs. Because of the profitability component built in our ImpactECS models, we have regular conversations with the commercial team during the time of the year when we’re negotiating about 40% of our customer contracts. We’re heavily involved in all the things that are going on right now from a predictive analytics and machine learning standpoint in addition to supporting all of the ROIs on the investments.
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