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True Product Cost™

True Product CostTM creates accurate customer and product P&Ls to target operational and financial improvements.

HIGHER PROFITS BEGIN WITH COST CLARITY

Efficiency doesn’t equal profit. Without accurate product costs, you can’t know if your improvements are helping—or quietly hurting—your bottom line.

Why Standard Costs Don’t Work

Traditional costing methods are built on broad averages and simplistic allocations. It falls short of giving manufacturers the clarity they need. They distort reality, mask actionable insights, limit agility, and prevent leaders from making informed, profit-focused decisions.

Oversimplified Assumptions Distort Reality

Standard costing spreads indirect costs with crude averages. This skews margins and hides the truth.

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Standard costing spreads indirect costs using broad metrics such as direct labor or machine hours. In modern manufacturing where indirect costs are rising rapidly, this approach misallocates expenses and obscures true profitability.

Limits Strategic Agility

Static allocation rules can’t keep pace with shifts in product mix, processes, or cost structures.

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Static allocation rules fail to adapt to dynamic shifts—changes in production methods, product mix, resource usage, or cost structures. This leads to outdated financial insights and missed opportunities for timely interventions.

Suppresses actionable insights

Averaging costs across products masks which SKUs make money—and which quietly drain profits.

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When costs are averaged across diverse products or processes, it’s nearly impossible to identify which SKUs are truly driving margins—and which are silently eroding them.

Undermines micro-level decision-making

Leaders need P&L clarity by product, process, and customer. Standard costs just don’t provide it.

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Leadership needs granular P&L data—by product, process, or customer—to fuel effective pricing, rationalization, and strategic investment decisions. Standard costs simply don’t provide that visibility.

Vayoom Corrects Cost Calculations

Traditional approaches allocate indirect cost using direct variables like machine or labor hours. This does not reflect the reality for the ever increasing proportion of indirect versus direct cost.

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Vayoom distributes indirect cost to each product using product or process attributes. Controllers and operations managers can configure the AI model by selecting the appropriate attributes for various indirect cost categories. The categorization is not static and can be dynamically updated on demand.

Transform Cost Data into a Competitive Advantage

Unlock your profit potential with True Product Cost™ and strategic product stratification.

Vayoom’s AI-powered manufacturing SaaS platform is purpose-built to help manufacturers like you take control of product-level profitability. At the core of the platform is True Product Cost™, a powerful analytical engine that delivers detailed, product-specific profit and loss (P&L) insights. This level of visibility goes beyond traditional costing methods, giving you a clear understanding of where you make and lose money—product by product.

Building on this foundation, Vayoom enables Product Stratification—a strategic method that segments your product portfolio by cost structure, margin contribution, and customer value. By identifying high-margin winners, low-performing SKUs, and break-even products, you can make informed decisions about pricing, process improvements, product rationalization, and marketing positioning.

Vayoom empowers you to optimize your portfolio, maximize margins, and build a stronger, more resilient manufacturing business.

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