Decisions to locate the production to a specific location are often fraught with emotions and controversy. To make the right decision in such a context, companies need reliable and transparent information. FACTON EPC allows for calculations that include all location-specific costs so that plants can be compared like with like. Existing factories can be evaluated regarding their productivity by setting them against internal or external benchmarks.
When accepting an order, companies competing in a global market often need to decide where the ordered goods should be produced. Choosing a production plant is a decision that should never be made lightly, as its implications can be enormous. With FACTON EPC, businesses are able to accurately compare the costs and profits of the relevant production plants in the form of a detailed production location comparison. This comparison is based on facts and figures, and also highlights any extra costs that might arise in connection with strategic decisions.
Standardised generation and layout for production location comparisons
FACTON EPC works with a standardised costing layout, which ensures that all cost and profit calculations of the locations under scrutiny are compiled according to a uniform method. Automated comparison functions enable users to quickly identify differences in the cost structures. Location-specific parameters can be edited at any time with a few mouse clicks. The integrated version management system ensures that no information is lost.
The various location scenarios generated and evaluated with FACTON EPC can subsequently be converted into reports for submission to decision-makers. Management can thus rely on standardised and transparent information based purely on facts.
Internal and external benchmarking of locations
Location comparisons are also widely used to identify the strengths and weaknesses of existing production plants. They might, for example, include comparisons and evaluations of the production costs of individual items, overheads and logistics expenses. As all relevant location data is stored in the central database of the EPC system, all parameters required for internal cost structure analyses are already in place. Apart from an internal comparison, FACTON Content caters for the external benchmarking of production locations. FACTON Content contains all relevant costs (including overhead structures) grouped by region, company size, real net output ratio, and industry.