Apriori's Azzolino Notes Cogs Reduction Up to 30% Increase in Net Income in Advanced Manufacturing
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.
According to Frank Azzolino, President and CEO of aPriori, "This forces companies to focus on product cost and profit margins with renewed vigor. Manufacturers are forced to operate under net margins of only a few percent. A 1% decrease in COGS can equate to a 16 -30% increase in net income in many discrete manufacturing companies."
Discrete part manufacturing companies are experiencing a demanding and difficult combination of price pressure from customers, rising costs both internally and from vendors, international competition, and income growth pressure from investors. Providing innovative cost management solutions to the discrete manufacturing industry enables manufacturers to better understand product cost decisions early and throughout the product lifecycle. This unique 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." Companies can now assess, control, and reduce cost of goods sold by whole percentages.
In the September issue of Advanced Manufacturing, aPriori's COGS reduction is profiled by manufacturing journalist Thomas R. Cutler.
The aPriori v4.0 Cost Management Software Platform provides real-time, predictive cost assessments throughout the entire product development and delivery process. aPriori v4.0 enables designers and engineers, manufacturing engineers and planners, purchasing and sourcing professionals, cost managers, and program/project management to make better decisions to reduce, avoid, and recover product costs. aPriori's solutions enable manufacturing companies to measurably reduce their Costs-of-Goods Sold (COGS) by whole percentages by identifying quantifiable savings in material, tooling, labor and overhead while evaluating alternative designs, manufacturing processes, and vendor sources.
About aPriori
Based in Concord, MA, aPriori 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 patented 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."
"aPriori has customers in a variety of industries including High Technology, Industrial Equipment, Automotive, and Heavy Machinery. Recent customers include John Deere, Panasonic, Thomas & Betts, Flextronics, JLG, and Dana Corporation."
Manufacturing journalist Thomas R. Cutler's full feature article can be read at:
www.trcutlerinc.com/Insideindustry_AMSep06.pdf
aPriori
www.aPriori.com
John Busa
jbusa@apriori.com
978-371-2006
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