Cost Modelling Software
For food manufacturing planning teams, with responsibility for controlling costs and improving margins, our Cost Modelling software is transformational. Offering measurable returns,
SI’s Cost Modelling software has the power to solve many of the production planning challenges faced by today’s food manufacturing industry, revealing the commercial value of each and every product batch.
What margin will I make today? How much does it really cost to make my products?
In the price-sensitive food manufacturing sector, having full control and understanding of costs is essential, but it’s difficult to account for all fluctuations, complexities and variants associated with food processing.
Analysing costs when supplying different specifications to a number of customers can often leave processors having to guess at their margins, when tracking of credit back values, waste, promotional activity, price adjustments, NPD and specification changes all need to be considered.
By using SI’s Cost Modelling, food manufacturers can identify which operational areas are profitable and those which need addressing, and target the processes and products that are delivering more profit.
Then, by automating calculations, processors will have continuous, accurate and up-to-date information to help prevent overspend and understand where savings can be made.
SI’s cost modelling software, empowers food manufacturers to:
Map out every product relationship and conversion, from raw material to finished goods;
View all standard costings at every stage including: raw material prices, production costs, standard production yields, packaging, labour, running costs;
Provide detailed category attributes for product types and target margins;
Map out labour, operating and other material costs to establish target margins and pricing;
By comparing actuals v standards by batch, understand variances and monitor every stage of production, to better inform commercial decisions;
Mimic product expectations as processing takes place and then compare to reality;
Automatically map out bill of materials to drive works order processing, production planning, and more;
Capture yield at every stage and determine cost v. profit by recording and analysing supplier yields achieved;
Then, by using SI’s Least Cost Formulation, maximise margins with advanced its insight into the real costs for finished goods;
Perform cost v. margin analysis for each product;
Track costs associated with waste, promotional activity, price adjustments,
SI’s Margin Manager shows how margin, based on forecasted and actual product volumes sold, is influenced by changes to the standard. For instance: differences in sales price, forecasted margins, yield, and changes in raw material prices.
With its ‘master template’ and other ‘scenario’ template, model potential future changes such as; raw material prices, standard yield based on new equipment, new packaging.
Food manufacturers can also model the impact of substitutions. For instance, if multiple raw materials can be used to make the same finished product – which is the most cost-effective? Our templates are also useful for new product development (NPD) to examine the costs associated with a new product.