Our end-to-end data analytics platform helped this private equity owned circuit board manufacturer understand the drives of recent margin degradation
From component costs to labor hours to machine time, contract manufacturing produces a tremendous amount of data that needs to be harnessed in order to make informed decisions on product pricing and on the bidding process for new jobs.
By the time financial reporting made its way to stakeholders taking action was too late. Decisions were being made in the dark by management teams that were handcuffed by their ERPs limited reporting ability.
The company captured data across multiple systems which resulted in a highly manual and time-intensive reporting process. Because of this, the company used a high-level approach to overhead allocation that led to the loss of granularity.
Working together, OA deployed ProfitCube which integrated the company’s multiple data sources and allowed the company to see the exact costs and labor hours that went into each unit manufactured. With ProfitCube’s powerful capabilities, the company was able to quickly identify and adjust pricing on unprofitable products.
As a result, the company had the ability to analyze historic performance and get a better handle on key cost drivers such as labor hours per unit. The confidence gain by leveraging a central source of truth in the form of a data platform helped the company generate margins in excess of their historic performance through a successful enhanced pricing and bid strategy.