True Product Cost™

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

KNOWING THE TRUE COST IS THE KEY TO INCREASING PROFITS

Efficiency improvements and cost-cutting do not guarantee increased profits. They often require additional investments and shifts in cost structure. 

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.

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.

Product Stratification to Target Improvements

Most manufacturers seek to understand the precise cost of production. Traditional methods of aggregated analysis serve after-the-fact accounting purposes and are not suitable for managerial decision-making. Product costs fluctuate with variations in product mix, labor composition, and supply chain issues. Due to the absence of an accurate method for appropriately distributing cost to each product, managers are unaware of which products are truly profitable.

Vayoom’s True Product CostTM algorithm distributes the cost to each product accurately creating individual customer and product P&Ls. It utilizes operational data to proportionately distribute the cost and segments products into profitability groups.

Discover how Vayoom can unlock new profit opportunities for your business.