Manufacturers present a few challenges that other businesses do not. First, they can require a more complex inventory system, with bills of materials and sub-assemblies. Another difference is they may require more complex schedules to develop inventory cost, such as components for direct labor and applying overhead. As a result of this, they require different pricing strategies to determine how to price their products.
Related to this inventory, there can be a much bigger investment required to hold higher inventory quantities, which further challenges the business owner. Having worked for or with a wide variety of manufacturers, we understand the challenges they face and are uniquely prepared to help in each of these areas:
- Develop costing for different product lines
- Calculate overhead applications based on product types
- Discuss sourcing of raw materials
- Review just-in-time inventory purchasing
- Weigh the benefits of sole sourcing vs. dual sourcing
- Build pricing models from inventory costing
Once we address these areas, we can then help in those areas that are common to most businesses:
- Obtain bank funding for increased inventory levels
- Assist with bank reporting related to their loans
- Develop reporting that identifies which products contribute the most to the bottom line
- Help you aggressively manage your cash flow
Financial CFO's and controllers put more control in your hands, by arming you with accurate up to date information so you can make better and timelier decisions. We are easy to work with and can help you get the most out of your staff.