Discrete part manufacturing companies are experiencing a
demanding and difficult combination of price pressure from
customers, rising costs both internally and from vendors,
international competition, and income growth pressure from
investors. Cost of Goods Sold (COGS) has become an increasingly
important metric as the largest expense item on the income
statement; typically 70 to 90% of revenue.
According to Frank Azzolino, President and CEO of aPriori, "This
forces companies to focus on product cost and profit margins
with renewed vigor." aPriori has developed a white paper that
presents an architecture for Cost Management platform developed
through a six year industry/university collaborative research
project initiated to address this problem in New Product
Introduction (NPI) programs.
Azzolino suggests, "Manufacturers are forced to operate under
net margins of only a few percent. A 1% decrease in COGS can
equate to a 16 -30% increase in net income in many discrete
manufacturing companies."
Based in Concord, MA, aPriori (www.apriori.com/ ) is the
technology leader providing innovative cost management solutions
to the discrete manufacturing industry. aPriori's Cost
Management Software Platform enables manufacturers to better
understand product cost decisions early and throughout the
product lifecycle. aPriori's Cost Management Platform empowers
manufacturers to lower cost-of-goods sold (COGS), provides
real-time visibility to "cost-critical" decision information,
and builds critical cost knowledge to go on the business
"offensive." aPriori's patent-protected cost management platform
allows companies to assess, control, and reduce cost of goods
sold by whole percentages. The aPriori Platform truly enables
"Cost Knowledge Before it Matters."
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Article: APriori Brings Cost Management Innovation To Discrete
Manufacturers Author: Thomas Cutler Publication Date: 2008-02-16 Total Views: 678 Word Count: 221 Category:Home /
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