Industries · Manufacturing
Earnings are made on the factory floor. They should be visible in the numbers.
Manufacturers have capital tied up in inventory, machinery and raw materials. We show you what each product costs and where your earnings are actually made.
Inventory is money standing still. It should be managed as money.
Who it is for
For companies that manufacture their own products, where cost prices, material prices and capacity determine earnings.
We understand how production, inventory and liquidity connect, and turn that into numbers management can use.
What we see in the industry.
- Inventory valueInventory valued incorrectly gives an incorrect result.
- Cost pricesThe true cost price of products is unknown or out of date.
- Contribution marginIt is unclear which products and customers make the money.
- LiquidityCapital tied up in inventory and receivables.
- InvestmentsMachinery and plant that must pay for themselves.
- Raw material pricesPrice swings that quickly hit the margin.
What we deliver.
- InventoryCounting and valuation of your inventory, correct and documented.
- Cost price calculationThe true cost price per product, including indirect costs.
- Profitability analysisEarnings per product, customer and channel.
- Liquidity managementInventory, receivables and payables actively managed.
- Investment appraisalA basis for decisions before you invest in machinery and capacity.
- Management reportingKPIs that production and management recognise.
What is not measured cannot be managed. Not even in the warehouse.
How we work.
- ConversationProducts, processes and business model.
- ReviewWe review inventory, cost prices and reporting.
- ModelWe build a cost price and profitability model that fits your business.
- ReportingA fixed rhythm with the KPIs that matter.
- AdviceWe point to the products, prices and capital that need action.
From floor to bottom line
Numbers production recognises.
We build the reporting so the production manager and the managing director see the same picture.
When everyone works from the same numbers, decisions become better and faster.
Questions.
How is inventory valued?
Typically at cost price, or at net realisable value if that is lower. The cost price may include indirect production costs.
How often should we count our inventory?
At least at year-end. Many get better control with ongoing counts of selected items.
Can you calculate the cost price of our products?
Yes. We build a model that allocates materials, wages and indirect costs to the products.
How do we free up liquidity?
By actively managing inventory, receivables and payables. We point to where the capital is tied up.
Do you work in our ERP system?
Yes. We work in the systems you already use, and are happy to help if the system needs to be replaced.
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