Cost Management
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      1. Intuilize Knowledge Base
      2. Price Optimization & Management
      3. Cost Management

      How does Intuilize help improve my standard cost processes?

      Discover how Intuilize identifies and resolves standard cost process inefficiencies to prevent margin erosion and improve pricing accuracy

      Many organizations underestimate the impact of inefficient standard cost processes on their bottom line. Even small delays or errors in updating costs can lead to significant margin erosion over time, especially in businesses with thousands of SKUs and frequent supplier price changes.

      Intuilize's price optimization solution could  includes a comprehensive evaluation and improvement of your standard cost processes, which can be a significant source of margin erosion when not properly managed.

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      Standard Cost Process Evaluation:

      1. Gap Analysis: We conduct a thorough analysis of your current standard cost processes, identifying delays, inconsistencies, or errors that may be impacting your gross margins. This analysis often reveals issues that have been undetected for years.
      2. Cost Update Efficiency: We evaluate how efficiently your organization updates costs when vendor prices change, particularly during high-volume periods like year-end or when significant price increases occur across multiple suppliers.
      3. Cost Validation: Our system helps identify discrepancies between stated costs and actual costs, ensuring your pricing decisions are based on accurate cost information.

      Improvement Strategies:

      1. Automated Cost Updates: We streamline the process of updating costs in your ERP system, reducing the manual effort and potential for errors when processing vendor price changes.
      2. Visibility into Cost Erosion: Our analytics provide clear visibility into where cost-related margin erosion is occurring, allowing you to prioritize areas for improvement.
      3. Standardized Processes: We help establish consistent processes for cost updates across your organization, eliminating ad-hoc approaches that can lead to inconsistencies.
      4. Validation Workflows: Implementation of validation procedures to ensure cost updates are accurate and complete before they impact pricing decisions.

      Benefits:

      1. Improved Margin Accuracy: By ensuring costs are up-to-date and accurate, your pricing decisions are based on correct margin calculations.
      2. Time Savings: Automated and streamlined cost update processes can save significant time, especially during periods with numerous vendor price changes.
      3. Reduced Errors: Systematic approaches to cost management dramatically reduce the potential for costly manual errors.
      4. Better Decision-Making: With accurate cost information readily available, your team can make more informed pricing and purchasing decisions.

      For many distributors, improvements in standard cost processes can account for a third to half of the total gross margin improvement achieved through our solution.