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Manufacturers: Widen the Gap Between Price & Cost

October 19, 2020 Team Zilliant

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Most B2B food producers face a massively complex environment typified by hundreds of products and customers, increasing competition, raw material cost volatility, constantly fluctuating futures, logistical complexity and pragmatic capacity constraints.

Capacity-allocation decisions and pricing decisions – two primary profitability drivers — are often handled discretely, by different teams, using spreadsheet-based models, intuition and experience. By only focusing on minimizing costs when it comes to capacity decisions, manufacturers are missing out on the opportunity to bring price into the equation to optimize overall profitability and leapfrog their competitors’ capabilities.

In this whitepaper, we will explore why spreadsheet-based models and other do-it-yourself approaches aren’t up to the task and how, by making capacity decisions price-aware, manufacturers can widen the gap between price and cost to optimize profits and strategically drive their business.

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