10 Best Product Cost Insights Posts of 2023

Key Takeaways:

• Manufacturing industry leaders rely on aPriori to help provide actionable product cost-cutting strategies
• Incorporating them optimizes manufacturability, sustainability, and profitability

The Full Article:

Product cost management is multi-faceted. It requires that manufacturers explore and test new approaches to capture cost savings. It also necessitates the implementation of a “cost culture” that spans the entire product development lifecycle.

So, it’s no surprise that our most popular product cost-related blog posts cover this topic in a variety of ways – from reducing costs through better supplier collaboration to accelerating cost analysis with bulk costing. Here are our 10 best product cost insights blogs for 2023:

1. Product Cost Management Tools: Past, Present, and Future

Approximately 70% of organizations today use spreadsheets to compare and track actual new product costs. These spreadsheets have significant disadvantages including their laborious nature and vulnerability to human error. Product cost insights management solutions provide comprehensive cost modeling estimates, facilitating economical product design to improve profitability. Explore the evolution of product cost insights management tools and how to leverage today’s technologically advanced solutions.

2. How to Collaborate With Suppliers to Reduce Product Costs

A National Association of Manufacturers (NAM) Q3 2022 survey found 78.3% of manufacturing leaders listed supply chain disruptions as a primary business challenge, with only 10.8% believing improvement will occur by the end of the year. This blog addresses these challenges and explains how to mitigate raw material and product costs. See how sourcing can achieve cost savings while maintaining strong relationships with strategic suppliers. Learn how to estimate and capture accurate product cost insights in real-time, early in the design phase with manufacturing cost models like aP Pro.

3. Capital Expenditures: Where Your Industry Stacks Up & How to Offset with Product Cost Reductions

The U.S. Census Bureau reports that between 2010 and 2019, U.S. businesses (not including farming) increased their total capital structures and equipment expenditures by 70% during the decade, totaling $1.15 trillion. Get tips to keep product costs down, improve operational efficiencies, and offset capital expenditures with cost-saving solutions like aPriori.

4. Accelerate Your Product Cost Analysis With Bulk Costing

Time is money. Too many cost engineers lose both time and money manually costing product parts individually. Accelerate cost data analysis and reduce human error with automated bulk costing. Identify cost reduction opportunities early in, and across, product development to improve profitability and manufacturability.

5. How to Transform Product Cost Engineering for Today’s Future

Traditional costing operations no longer meet the requirements of today’s cost teams. These outdated, laborious methods impede efficient cost estimations, further slowing time to market. Today’s cost engineers need an automated manufacturing insights solution that offers accurate, highly detailed, real-world cost analysis in real-time and across product development teams. Read how solutions like aPriori seamlessly integrate with a manufacturer’s product lifecycle management (PLM) system, enabling cost analysis of thousands of products quickly and accurately.

6. How Product Costing Software Turns Novices Into Cost Experts

The NAM survey found 76% of manufacturers struggled with attracting and retaining a quality workforce. Advanced costing solutions help engineers of all skill levels estimate product costs and share insights across the company quickly and accurately. aPriori’s product cost insights software leverages manufacturing cost models and regional data libraries to run accurate cost simulations in real time that help improve profits.

7. Evaluate Costs with Our New Product Material Cost Analysis Calculator

A KPMG survey revealed that 71% of global companies highlight raw material costs as their number one supply chain threat for 2023. Take our informational-only demo calculator for a test drive. See how you can conduct a material cost analysis. Get an accurate barometer of your total initial material cost to negotiate with suppliers more effectively. Use it to determine the feasibility and profitability of making that part.

8. How to Uncover Hidden Product Manufacturing Cost Drivers

Although hidden product manufacturing cost drivers usually reside within product development, some arise from external, hard-to-anticipate factors like inflation and geopolitical disruptions. Learn how to identify and address the top five “hidden” product cost drivers and their associated solutions.

9. 5 Best Practices for a Product Manufacturing Cost Analysis

Manufacturers need to reduce product costs without sacrificing quality, competitiveness, or time to market. Deloitte’s 2023 Manufacturing Industry Outlook reveals that 50% of surveyed executives agreed that recent disruptions including material shortages and supply chain issues significantly affected their productivity and profits. A product cost insights solution like aPriori helps organizations identify and optimize raw materials and supply chain savings, empowering supplier negotiations with fact-based analysis. A digital manufacturing software solution also allows for faster, better decision-making regarding how to prioritize cost drivers.

10. 5 Moves to Evolve from Cost Reduction to Cost Transformation

Containing cost and increasing cash flow are pivotal to the health of any manufacturer. It’s critical that procurement teams are at the top of their game. Strategic sourcing includes much more than just identifying short-term cost savings as part of the day-to-day purchasing process. True cost transformation won’t happen without a should cost analysis and the right manufacturing insights solution.

A Product Cost Digital Solution: The Path to Competitiveness and Profitability

Today’s manufacturers need every advantage they can get. The right product cost insights digital solution can ensure financial stability and strength in the marketplace. By optimizing solutions like aPriori, manufacturers can reduce costs, streamline their operations and workflows, and ultimately, improve product quality. Additionally, it can enhance supply chain management and foster better supplier relationships and negotiations.