Information about Enterprise Product Costing, software and more.

    Partner Interview: Ralf Altpeter, umlaut

    19/02/2020, Author: Karl-Heinrich Deppe

    Since 2017 umlaut is a technology and alliance partner of FACTON. As a provider of consulting, management and engineering services, umlaut applies its engineering know-how to international customers and uses FACTON's purchasing solution for the analysis of product manufacturing costs. The combination of consulting services and the use of the costing software enables a profound price analysis of purchased parts with a continuous calculation process. Product costs are determined early on and can be constantly optimized.

    In the video Ralf Altpeter, Head of Cost Engineering of umlaut, reports why the consulting company decided to use FACTON EPC and what the advantages of the EPC Should Costing software are.


    The following three points are decisive for the use of the software for the company:

    • Application Programming Interface (API) for building complex calculations
    • Automated data integration
    • Quick creation and management of calculations

    Why do companies rely on a Should Costing solution?

    50-60 percent of product costs consist of purchased materials. Development, Purchasing and Cost Engineering can significantly influence the cost structure and thus the profitability of a product due to the high percentage. Buyers know the potential, but have to deal with complex requirements when exploiting it. They are required to permanently map global supplier structures into the company's supply chain in order to be able to consistently display purchased part prices, cost structures and cost drivers. The need for short reaction times and increasing quality requirements increase the pressure on efficient processes.

    Software solutions in purchasing support system-integrated and automated processes in order to be able to react faster and more flexibly to increasing demands and complex tasks such as the cost accounting of products in global supplier structures. The cost optimization of purchased materials can be implemented in the application together with cost engineers and negotiation topics for supplier workshops can be identified and prioritized more quickly. On this basis, purchasing departments can work with the supplier to define short and long-term cost objectives of the cooperation (e.g., reduction of overhead rates for materials, optimized utilization of machine times). This strengthens the partnership for both sides.  


    Karl-Heinrich Deppe, Business Development FACTON

    Karl-Heinrich Deppe

    Business Development | FACTON