Cost Analysis & Optimization:
Profit margin is an important attribute to product success. Potential
activities for improving profit margins include:
- Establishing and meeting initial product cost targets
- Product cost reduction opportunities for existing products
o ingredient modifications
o production efficiencies
- Product line consolidations
AA&T evaluates product ingredients and manufacturing efficiencies
to determine where high costs are concentrated.
AA&T then determines the most beneficial way to develop cost
effective new products or reduce existing product costs, without
compromising product integrity or customer satisfaction.
AA&T utilizes sensory testing to support consumer acceptance
of product changes.
AA&T also conducts product line consolidations, as required,
due to product line similarities and over-extended product lines.
- Anticipated profit margins are met for new products—appropriate
product costs and manufacturing efficiencies are delivered
- Improves profit margins realized through reformulation of existing
products and implementation of manufacturing cost efficiencies
- Increases revenue with improved customer satisfaction
- Maximizes efficiencies and minimized inventories i.e. ingredients,
SKU’s, packaging materials, after consolidations
- Lowers manufacturing costs from decreased change-over times
and consolidated processes