Accurate Cost Predictions Improve Discrete Manufacturers’ Margins

Thomas R. Cutler | March 14, 2006

Discrete Manufacturers’Margins Improved with Accurate Cost Predictions

“Our software is designed to implement design-to-cost strategies during the product stage rather than as a constraint to satisfy at the end of a design,” according to Frank Azzolino, President and CEO of aPriori

aPriori allows users to avoid or reduce the inevitable lengthy post-product launch cost reduction exercises and costly changes late in the development process.” Discrete part manufacturing companies are experiencing a demanding and difficult combination of prices pressure from customers, rising costs both internally and from vendors, international competition, and income growth pressure from investors. Cost of Goods Sold (COGS) has become an increasingly important metric as the largest expense item on the income statement; typically 70 to 90% of revenue.

Azzolino recommends that discrete manufacturers make cost a true design parameter. “Always knowing product costs prevents surprises, missed cost targets, and rework, schedule delays, and missed market window.”

Based in Concord, MA, aPriori (www.apriori.com) is the technology leader providing innovative cost management solutions to the discrete manufacturing industry. aPriori’s Cost Management Software Platform enables manufacturers to better understand product cost decisions early and throughout the product lifecycle. aPriori’s Cost Management Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides real-time visibility to “cost-critical” decision information, and builds critical cost knowledge to go on the business “offensive.” aPriori’s patent-protected cost management platform allows companies to assess, control, and reduce cost of goods sold by whole percentages. The aPriori Platform truly enables “Cost Knowledge Before it Matters.”