For food manufacturing planning teams, with responsibility for controlling costs and improving margins, our Cost Modelling software is transformational.
Offering measurable returns, Cost Modelling has the power to solve many of the production planning challenges faced by today’s food manufacturing industry.
By identifying which operational areas are profitable and those which need addressing, target specific processes and products delivering more profit. By automating calculations, processors have continuous, accurate and up-to-date information to help prevent overspend and understand where savings can be made.
Drive profitability with real-time access to business information
From one day to the next, margins change due to differences in raw material costs, overheads and yield, which all contribute to the actual cost of making each product.
SI’s cost modelling software, empowers food manufacturers to:
- Map out every product relationship and conversion of raw material through to finished goods.
- Provide detailed category attributes for product types and target margins.
- Map out labour, operating and other material costs to establish target margins and pricing.
- Understand your variances and monitor every stage of the production process from intake to dispatch, to better inform commercial decisions.
- Mimic the expectation for the product as it is processed and then compare to reality.
- Capture yield at every stage and determine cost versus profit by recording and analysing supplier yields achieved.
- Perform cost versus margin analysis for each product.
- Gain a complete understanding and control of all costs.
- Track costs associated with waste, promotional activity, price adjustments,
Then, by using SI’s Least Cost Formulation, maximise margins with advanced its insight into the real costs for finished goods.
At SI, we know that manufacturing products that meet with repeatable standards, in the most cost-effective way, is a complex analysis process. This is especially the case when processes involve optional input materials with varying costs and factors.
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. With the tracking of credit back values needing to be considered, as well as other factors including:
- Promotional activity
- Price adjustments
- New product development
- Specification changes
There is little time for cost analysis. This means margin problems are often identified when it’s too late and profits are dented, or when losses have already been made.
Understand the commercial value of each and every one of your product batches with Cost Modelling.
Finally, SI Food Software.