Get off the cost roller coaster

Historically, FOB has not been an area of focus for manufacturers because there was minimal volatility in cost components allowing for flexibility in contract price negotiations. By maintaining margins and having goals that focus on overall cost controls to increase profit with better price management and establishment of margin thresholds – you can go beyond maintenance and increase your margins by 3-5%!

Change the way you think by moving away from unprioritized margins to reprioritized margins.

Unprioritized margins (FOB costs)

  • Raw material and production cost fluctuation
  • No stopgap or controls to prevent margin-averse contracts and pricing

Reprioritized margins (non-FOB costs)

  • Contract pricing: pricing varies on so many levels – quantity, seasonal, price fluctuations and demand.
  • Uncontrollable rising costs have forced manufacturers to better understand and control negotiated contract pricing to prevent margin erosion.

See how Kimberly Clark achieved real-time integrated contract pricing for sales orders. Group 2087.png

Cost Roller Coaster &
Keeping Margins Whole

Keep your
eyes open

The proof is in the
pudding or the margins

Peeling back
the onion

The Tangled Web of
Complex Markets

The heat 
is on

The dominoes
are falling

Palatable management
of complex markets

Labor Wading Pool:
Manual Processing

It takes
the cake



It’s a
new day