Product Cost Management Whitepapers
As discrete manufacturing companies experience increasing price pressure from customers, rising supplier costs, overseas competition, and income growth pressure from investors, they are forced to scrutinize product margins and cost of goods sold (COGS) with renewed vigor. Across a variety of market sectors, COGS can be as high as 70-90% of revenue. The ability to directly reduce COGS presents the opportunity to significantly impact a company’s bottom line. According to a recent industry analyst report in which 150 of the top US manufacturing companies were surveyed, “cost estimation and control” were identified as management’s number one concern.