X Close Icon

Reduce Cost of Goods

How can you reduce cost of goods in manufacturing? How do you measure cost of goods?

Most manufacturers include direct materials, labour and overheads when evaluating costs. An understanding of all three is needed when trying to reduce the cost of goods, which can contribute to bottom-line KPIs in the business:

Increase profit margin

Company profit margin is directly related to cost of goods and the prime driver behind cost reduction initiatives.

Ensure business sustainability

Companies focussed on long term reputation and brand value need to invest in sustainability. Reducing excess costs enables such investment.

Increase customer satisfaction

Reducing costs via reduced raw material costs or improved efficiency contributes to improved customer service (faster order fulfilment, competitive pricing etc).

Cimlogic Support

Manufacturers can be slow to adopt new technologies which can contribute to improved efficiencies and reduced costs. Cimlogic support clients in achieving goals in areas such as:

  • Reducing the order management cycle (from order to delivery)
  • On time delivery
  • Improving product quality

Cimlogic’s expertise in lean manufacturing and Six Sigma enables clients to understand how to make consistent, high quality products, efficiently and economically, taking into consideration factors such as labour, inventory, and capacity.

If reducing cost of goods in manufacturing is high on your agenda, speak to us today.

Contact us

How does Cimlogic help you to achieve this goal?

Explore more business goals:

Connected Supply Chain

Learn more

Data-driven Decision Making

Learn more

Sustainability

Learn more

Embrace Digital in Manufacturing

Learn more

Latest News

Making Sustainable Manufacturing Work For You

Read this blog as we discuss sustainable manufacturing in heavily regulated industries such as Food & Beverage, Pharmaceutical & Life Sciences, and the increasing use of digital technologies to meet sustainability and corporate social responsibility goals.

Find out more

Sustainable Manufacturing – more than just a buzzword

Read this blog as we discuss what different steps and initiatives can be taken to achieve sustainable manufacturing goals.

Find out more

How can Machine Learning solve your quality challenges?

Steve Wilkinson, Chief Technical Officer at Cimlogic shares batch process improvements discovered during a recent client project in this latest blog

Find out more

You may be interested in

Article: 20 Years of OEE 20 Lessons Learned

Are you embarking on an OEE journey, but not sure where to start? Download the ’20 years of OEE, 20 Lessons learned’ guide for expert advice on what makes a successful OEE project, and how…

Find out more

White Paper: The Executive Guide to Leveraging OEE

Find out more

TrakSYS Brochure

Download the TrakSYS™ brochure to learn more about the capabilities of the TrakSYS™ MES platform and how it can help your organisation embrace digital manufacturing.

Find out more