Product Cost Management
To quickly predict the cost of new products, brand owners must maintain cost data for millions of parts. This challenge is compounded by fast-changing specifications and the likelihood of cost fluctuations. E2open Product Cost Management consolidates and analyzes time-phased cost data from all supply tiers, helping owners maximize margins on new products and create accurate supplier invoices.
Overpaid suppliers, missed rebates, and suboptimal margins
Accurate product cost data at the component and unit level is essential for evaluating new offerings. Yet costs are unpredictable when brand owners use hundreds or thousands of contract manufacturers and suppliers and store the raw data in spreadsheets. The scenario-based analyses that help owners find the lowest-cost combination of suppliers can’t be done with spreadsheets, so maximizing margins for new products is difficult. Owners often overpay suppliers and miss rebates that could dramatically reduce the unit cost of finished goods.
Meet margin and growth objectives
Design, build, price, and launch new products at the lowest costs with the highest margins. End-to-end product cost management helps you predict unit costs, gain insight, and meet growth objectives.
Confidently price new products
Predicting unit costs is easy, so you can plan ahead, negotiate discounts with suppliers, and price new products efficiently.
Record item and BOM costs
Suppliers, manufacturers, and logistics providers from across all tiers upload cost data for parts and bills of materials (BOMs).
Use cost-effective suppliers
By identifying alternate suppliers for reduced product and logistics spend and enabling you to negotiate, the system helps you lower unit costs.
Reduce invoice overpayments
Efficient reconciliation with suppliers’ cost projections helps you efficiently address the issue of invoice overpayments.
Identify shifting market conditions
Forward-looking cost data from suppliers helps you plan for changing market conditions—and you can even use data from the system for future cost forecasting.
Manage rebates and volume discounts
The system captures all rebate data—including rates, triggers, payment terms, and effective dates—so procurement teams can take advantage of suppliers’ offers.
Related applications to help you succeed
Centralizing and automating our export control processes, and particularly our trade compliance, not only reduces risk for Sandvik, but opens new opportunities to do more business worldwide.
Working with e2open enables us to better fulfill short supplier lead times, reduce inventory levels, and dramatically improve inventory turns—all while lowering the total cost of ownership to our customers.
Once you can see the shipments moving in transit, you can predict any late shipments and adjust. NCR will see a seven-figure benefit from the implementation; it has added definite value for us.
Having visibility to the supply chain gives us and our suppliers the opportunity to plan. We talk about planning its capacity, its resources, its material—and it helps with the cost as well by having all those elements tied together.
With the e2open system, processes that used to take a whole calendar year now happen in a matter of days.
We know what stock we have in the channel, is it healthy, what our average days of stock are, do we ship in more or do we reduce what we are shipping? We are really in control of channel data.
By implementing an integrated international purchasing system, we have ensured that Leggett & Platt is maximizing its efforts to conduct its international procurement activities in a compliant manner.
e2open compliance capabilities are very important for the Geodis Supply Chain Optimization compliance risk management program. The digital information is key to providing timely and accurate visibility, streamlining our compliance check processes, improving their efficiency and reliability. We’re now very well-positioned for the next wave of growth and ready to offer our customers more value than ever before.