Manufacturing Cost Case Study
True last cost report
Sparkfish developed a real-time manufacturing cost reporting process that accurately tracks and itemizes the cost of each product model, enabling the customer to maintain profitability through precise cost management and adjustments during price fluctuations.
The Problem
A rapidly growing manufacturer had data in multiple locations, including a custom portal, a manufacturing ERP (Traverse), and spreadsheets. They had a wide range of products, each with customizable options, hundreds of raw materials, and custom-built parts. Material prices were constantly changing, adding to the complexity.
Our Solution
Sparkfish developed a process that showed the exact cost to build each model sold.
This process extracted data from the client’s ERP and itemized each step of the manufacturing process. This allowed business users to trace each item back to see the true material cost based on current costing for that material.
As a result, the client was able to maintain profitability on all items sold by ensuring line-item costs were properly realized, particularly during periods of rapid price increases and inflation.
Challenges
- Integrating data from multiple sources like ERP systems and spreadsheets
- Handling complex product variations and fluctuating material costs
- Accurately tracking manufacturing costs for products with diverse components
Benefits
- Gained real-time insight into precise manufacturing costs
- Maintained profitability by adapting prices during cost fluctuations
- Improved decision-making with detailed cost tracking and visibility
