Competitive advantage for the purchasing department
Combining FACTON Should Costing and FACTON benchmark data for proactive cost management and cost-effective purchasing
With FACTON EPC Should Costing, purchasing teams can implement optimised procurement strategies. Detailed purchased parts price analyses are indispensible for successful negotiations with suppliers. In addition, FACTON Content provides buyers with valuable external benchmarks that are fully integrated into the calculation software.
By performing detailed purchased parts price analyses in FACTON EPC Should Costing, purchasing departments are able to identify target prices for purchased parts and can evaluate the effect of changes to the relevant specifications on the price. They are thus in a strong negotiating position when meeting suppliers, and might consider producing parts internally.
The EPC system stores all details of purchased parts, standard parts, and raw materials. The software manages prices of various origin (supplier, system, location) and of various validity. In addition, the system shows where purchased parts, standard parts, and raw materials are used.
Integrated benchmarks for global comparisons
With FACTON Content, purchasing departments have access to validated and external benchmark figures, including charges and data of locations, machines, and materials, standard components, and overheads. This information can be used for a number of purposes:
Fast and accurate identification of all parameters that might affect costs with a view to optimising costs
Evaluation of national and international competitors as regards their performance
Full access to relevant, up-to-date information for purchasing and sales teams in order to respond quickly to customer requests and to evaluate suppliers
Sound basis for make-or-buy decisions during the project development phase
Prompt response to developments in the market, price and cost changes
Reducing costs by means of best-practice comparisons
By combining the FACTON calculation tool with FACTON benchmark data, companies and their purchasing departments are in a position to implement a proactive cost management system.
Find out how a consistent purchased part price analysis within the EPC approach helps you to achieve the best prices for purchased parts and components.