US: Centric adds Product Profitability Planning tool
12 May 2009 | News | Source: just-style.com
A new module added to Centric Software’s product lifecycle management (PLM) and sourcing suite gives fashion firms visibility into product cost and gross margin information early in the product development process.
The Centric Product Profitability Planning module is part of Centric 8, Release 3, and calculates complete product cost and gross margin information – including operating expenses, channel costs, royalties, shipping costs and GMROI – before products launch.
“The Product Profitability Planning module provides unprecedented insight into the potential financial success of new products,” says Chris Groves, CEO of Centric.
The tool is aimed at helping companies eliminate products with poor margins early in the development cycle, leaving them to concentrate their time and resources on those products most likely to provide the highest margins.
It also provides financial information down to any level of the bill of materials (BOM) as well as across all SKUs, channels and regions of business.
Users across multiple departments can provide input and gain instant visibility to any changes in financial metrics.
Calculating and managing the fully loaded cost of a new product is difficult, explains Groves, since costs like royalties, cost of goods sold, marketing costs, freight costs and channel costs usually are captured by different departments in different systems and spreadsheets.
As each new product potentially has multiple SKU variants and channels, the challenge becomes complex.
Consequently, companies often fail to determine the true ROI before launching new products – and end up with unanticipated lower margins and product failures.
Centric has also added an Enterprise Search module to its PLM and sourcing suite, which enables users to search for information outside the Centric suite, along with Product Specification enhancements to help improve the design process.