JAGGAER and FACTON GmbH Address Should Costing and Value Management in Procurement
RESEARCH TRIANGLE PARK, NC – September 6, 2018 – Alexander Swoboda, CEO of FACTON GmbH, addresses understanding “Should Costing” as a key driver of value management for any enterprise dealing with direct materials procurement, on the JAGGAER InsideSpend webinar and podcast series. This webinar is designed to provide actionable intelligence and insights for Chief Procurement Officers, VP’s, and Directors and Managers of procurement locally and globally. The FACTON EPC Suite is the leading Enterprise Product Costing (EPC) solution for the automotive, aerospace, mechanical engineering and electronics industries.
Understanding the costs of materials produced is a complex calculation that requires drawing data from multiple areas of a company, and also necessitates supplier input. Swoboda draws his argument around a typical industry problem: the cost of necessary goods typically rise on an annual basis, and are obtained from a static supplier pool; it’s only by understanding the actual costs of the goods that a true assessment of fair market price can be calculated, because purchase price is the key driver of profitability. Swoboda provides analysis on identifying cost drivers to strengthen a negotiation position. The key to making these decisions lies in “Should Costing.”
Should Costing is a process enabling the determination of the cost of a part or product, based on raw materials used, manufacturing costs and overhead production costs. A true assessment of Should Costing involves some level of transparency with suppliers.
“Costing analysis starts with gathering data from multiple areas within a company, including product development, purchasing, sales, finance and controlling. To assemble all this and make decisions requires a technology system that provides a single source of truth, with a link between suppliers and customers,” says Swoboda.
Swoboda provides guidance on cost reduction potential through benchmark data, requiring identification of all parameters affecting cost, access to current information for target price calculation, and automatic analysis between current and target costs. “Getting this data is critical for running various scenarios, and this may be a make or buy decision. Should Costing has matured to the point where it yields a competitive edge, it’s part of the supply chain and should be linked with product development,” he adds.
This webinar provides the tools necessary to determine a path to Should Costing, supported by case examples illustrating the technology capabilities provided by JAGGAER and FACTON GmbH to power the process.
Viewers of the webinar will learn:
- The three critical questions you should ask in every direct sourcing scenario
- How to identify cost reduction potential with Should Costing, price analysis, benchmark data and comparison of variants
- How FACTON EPC uses product costing through its entire product life cycle
About JAGGAER: Global Source to Pay Spend Management Solutions
JAGGAER is the world’s largest independent spend management company, with nearly 2000 customers connected to a network of 3.7 million suppliers in 70 countries, served by offices located in North America, Latin America, throughout Europe, the United Kingdom, Australia, Asia, and the Middle East. JAGGAER offers complete SaaS-based Source to Pay eProcurement solutions with advanced Spend Analytics, Sourcing, Supplier Management, Contract Lifecycle Management, Savings Tracking, and intelligent workflow capabilities. JAGGAER has pioneered spend solutions for over two decades and continues to lead the innovation curve by listening to customers and analyzing the market. Our solution suites are trusted by the world’s largest manufacturing, education, health care, retail, consumer package goods, logistics, construction, utilities companies and public service organizations. Additionally, JAGGAER holds 38 patents–more than any other spend management company. www.JAGGAER.com.
About FACTON GmbH
FACTON GmbH is the company behind the FACTON EPC Suite, the turnkey solution for enterprise product costing (EPC). The company was established in 1998 and now has offices in Potsdam, Dresden, Stuttgart, and Detroit (USA). Since 2006, the company has been supported by Hasso Plattner, founder and chairman of SAP SE. www.facton.com