Emerton client is a manufacturer of advanced materials (metal alloys for niche industrial applications) with complex manufacturing processes and a high number of product variants.
Our client needs to develop:
- For reporting and business steering needs, an accurate view of cost and profit across ~100 product lines
- For pricing needs, a clear cost reference for standard products, as well as a cost reference for most common variants requested by customers
Emerton has been appointed based on combined industrial and data management skills
Split of client P&L across major product lines
Set of standard cost for standard products and selected variants
Update capabilities, to be further developed through the implementation of modern costing and pricing tools
Step 1: Costing methodology initialization
- Mapping of product portfolio and assessmentof the relevant granularity for costing purposes
- Mapping of production routes
Step 2: Data analysis and cost calculation
- Data extraction from ERP
- Data solidification (+ filling datagaps) through workshops with supply chain, production and controlling teams
- Cost calculations
Step 3: Data solidification and generation of business insights with all teams involved (Finance, Supply Chain, Production)
