Cost price simulation
What is the price benefit of replacing an ingredient in a recipe?
What does it mean for your contribution margin that your supplier has announced price increases?
As a new feature in the Power Pack module, you can now create simulations of different scenarios for cost price development.
The calculations are carried out through all production stages based on recipes, and several price scenarios can be worked on at the same time.
How cost price simulations work in tracezilla
Cost price simulations are carried out via the scenarios in the forecasting module.
By creating a baseline scenario and one or more alternative scenarios, you can test the impact of different changes.
Simulation of changes in recipes
In a recipe, you can enter that you want to change the quantity of an ingredient by a certain proportion. Or you can remove one ingredient entirely and add another. On the individual ingredient, you can change the ingredient quantities for each scenario you have created.
Simulation of changes in purchase prices
To calculate the consequence of expected price changes, you can create different purchase price lists for use in the individual scenarios.
You can choose to have the prices of the baseline scenario calculated on the basis of historical prices (the most recent quarter, if there are purchases there and otherwise further back). Alternatively, you can specify a specific price list to be used as a baseline.
Extracts and Views
The results of the individual calculations can be drawn up in customized reports in Excel, so that they can be easily compared. You can also add a view to a dedicated dashboard in tracezilla, so it is easy to access the report directly from the system.
Cost price simulations are part of the Power Pack module.
It is an add-on module on an equal footing with Tasks & Controls and B2B Commerce. 5 hours of help for setting up and configuring the module is included.
Contact tracezilla’s support team to learn more and get started with cost price simulations!
Telephone: +45 81 11 10 34