Optimize your manufacturing procurement process with Prognos

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The manufacturing industry exists within a world of radical uncertainties, and the global competition is growing ever bigger, changing the face of industrial manufacturing and manufacturing procurement. Not only do you need to be on your A-game to be competitive, delivering high-quality products to your customers, you also need to produce them at the lowest possible cost to make profit to be able to expand your business.

In this global market, the success of your manufacturing business depends on your ability to manage and balance increased customer expectations and demands, while at the same time protecting margins. In other words, your company needs to deliver: Lower prices, Higher quality, Newer features, More customization and Shorter production times while also maintaining market share and managing costs effectively.

The procurement in a manufacturing company is one of the areas with the biggest potential for cost savings by finding the best suppliers and negotiating with current one’s to gain better contract deals. It is often the go-to starting point for a company to develop their business and reduce costs.

Performing a manufacturing cost analysis

Performing regular manufacturing cost analysis is a vital part to gain insight into your procurement process and identify potential cost saving opportunities. But creating a cost-breakdown analysis for your manufacturing procurement process is at times a complex and daunting task, relying heavily on big amounts of data from multiple sources to create a useful cost analysis where you can identify potential cost saving opportunities.

Prognos manufacturing procurement software gives you access to all cost data required in order to both perform the necessary cost analysis and support your fact-based negotiations with suppliers.

The importance of concrete cost data

Knowledge is power, and data is knowledge.

Having access to vast amounts of cost data is necessary for you to get the most out of your suppliers. It gives you important insights into both direct and indirect costs concerning your procurement and the manufacturing industry as a whole. This cost data and information will give you an edge when negotiating with your suppliers, or at least level out the playing field.

Using Prognos for your manufacturing procurement

Prognos platforms gathers data from multiple sources to give you up to date data in one place for raw materials, manufacturing costs, tax & transport, labour costs and currencies.

Prognos is available as two different platforms:

  • From our platform Prognos Tailored you can access interactive, continuously updated, reports where you can drill down in your materials, compare the prices to your own cost development, export the graphs, or export the underlying data for further analysis. The reports are customized for you by Prognos, leaving you to focus on the negotiation strategy and not on finding the data. You also get access to several different features including: should cost trackers, selected indices and country focus.
  • With Prognos Online you get access to over 8 000 indices on raw materials, components, wages and currencies in an interactive online tool capable of transforming the data to fit your needs.

Get in touch with us to try out the Prognos platform today and experience all the benefits it provides.

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Frequently Asked Questions

Benefits of a procurement tool for the manufacturing sector

The manufacturing sector is ever-changing, with new manufacturing procurement requirements cropping up on a daily basis. As demand grows and resources stay limited, manufacturers face a dilemma as to whether they should compromise on resource quality in order to sustain. This is where manufacturing procurement software tool can highly benefit you and your enterprise.

Benefits:

  • Efficient sourcing
  • Reduced costs
  • Manufacturing procurement cycle transparency
  • Quality control
  • Minimized risk
  • Global indices data dashboard

Why is it important to perform a manufacturing cost analysis?

A manufacturing cost analysis is important as it helps create simplicity in the overall cost structure. With manufacturing timelines growing tighter, conducting cost analysis to enhance manufacturing capabilities is the need of the hour. It helps identify potential risks in procurement in a manufacturing company and also highlights potential benefits, such as:

  • Cost-saving opportunities
  • Clear forecasts of potential costs to be incurred
  • Financing opportunities
  • Eliminating redundant investments
  • Selection of economic, high-quality materials
  • Product re-engineering to remain competitive

What is procurement management?

Procurement management is the process of selecting the right products and services for a project. The process involves in-depth research and brainstorming about the product to project relevance, quality, long-term return on investment, payment, service delivery, and most importantly, risk mitigation.

Using a manufacturing procurement strategy helps you select the most cost-efficient choices that provide long-term returns for your business

Common problems in manufacturing procurement

  • Inconsistency in procurement data
  • Supplier-side compliance problems
  • Low-quality resources
  • Volatile commodity prices
  • Communication gaps

Adopting manufacturing procurement software can help tackle common problems faced in the manufacturing procurement industry and align your procurement strategy in the right direction.

Jacob Mannheimer, New Customer Contacts | Prognos MKA AB
Jacob Mannheimer

CEO, New Customer Contacts

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