Cost of Goods Sold (COGS) Profiled in Automationcom

Released on = March 30, 2006, 4:14 am

Press Release Author = John Busa

Industry = Software

Press Release Summary = Automation.com Profiles Cost of Goods Sold (COGS) in next
issue

Press Release Body = According to contributing editor, Thomas R. Cutler, in the
current issue of Automation.com, "Cost information in most organizations is
fragmented throughout the enterprise. Critical pieces of cost information are spread
across independent silos within an organization in different functions like
engineering, planning, manufacturing, sourcing, and finance. This situation
typically results in estimates that do not include all relevant information required
to make accurate and predictive product cost assessments."

On the income statement of most discrete manufacturing firms, cost of goods sold,
COGS, is typically in the range of 70-95% of revenue. For many of those same
companies, net income is typically in the range of 3-8% of revenue. Looking at a
representative company who's COGS is 80% of revenue and whose net income is 5% of
revenue; if you can reduce COGS by 1% (to 79.2% of revenue), that savings goes
directly to the bottom line, increasing net income to 5.8% of revenue thus
increasing net income by 16%.

Most discrete manufacturers believe they can achieve a modest 1% savings in their
COGS. According to Frank Azzolino, President and CEO of aPriori (www.apriori.com),
which produces cost management software, "Giving our customers accurate, predictive,
real-time product cost estimates along with their understanding of the leveraged
effect that reducing COGS has on net income (and the profit opportunity that this
represents) is one of our primary value drivers."

Based in Concord, MA, aPriori is the technology leader providing innovative cost
management solutions to the discrete manufacturing industry. aPriori's Cost
Management Software Platform enables manufacturers to better understand product cost
decisions early and throughout the product lifecycle. aPriori's Cost Management
Platform empowers manufacturers to lower cost-of-goods sold (COGS), provides
real-time visibility to "cost-critical" decision information, and builds critical
cost knowledge to go on the business "offensive." aPriori's patent-protected cost
management platform allows companies to assess, control, and reduce cost of goods
sold by whole percentages. The aPriori Platform enables "Cost Knowledge Before it
Matters."





Web Site = http://www.apriori.com

Contact Details = Contact:
John Busa
aPriori
978-371-2006
jbusa@apriori.com

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