Proactive, targeted cost management is becoming increasingly important because businesses need to have a handle on their costs to successfully compete in the global market and achieve profitable growth.
How to achieve profitability with purchasing and cost engineering
Purchasing plays an important role in effective design as the number of purchased components in product manufacturing increases. Production changes and extensions require purchasing and cost engineering teams to quickly and flexibly compare and adjust prices. Today’s suppliers are also involved in preliminary planning of production workflows in order to represent cost factors long before production begins.
What purchasing and cost engineering teams can do to increase profitability
Purchasing agents can take advantage of concepts developed in different departments (e.g., development) to satisfy design requirements. To customize these concepts to meet the unique requirements of the purchasing department, there is a set of methods that puts procurement in a position to optimally respond to these new tasks, to make an essential contribution to cost optimization and to establish itself within the enterprise-wide cost management process.
Successful with costing methods and systems
Enterprise Product Costing (EPC) is the management method that takes advantage of proactive, targeted cost management. It considers the value each business division contributes to effective product management. EPC systems define standardized processes, calculation methods and calculation standards along with a calculation logic to promote a uniform understanding of costs in purchasing and ensure that it is possible to compare results.
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