Whether you’re a part Supplier or an OEM (Original equipment manufacturer), finding and using better ways to understand and estimate part and product costs is critical to any manufacturer’s ongoing success.
Discrete manufacturing companies, such as job shops, contract manufacturers, precision machining, and fabricating shops as well as other suppliers who make parts, find tremendous value when using cost estimating software. Designed for speed, software can make a dramatic difference in helping estimators, quoting personal, and other cost-minded employees produce consistently accurate estimates and quotations… without compromising speed.
Manufacturing Suppliers are often faced with the overwhelming task of responding to numerous RFQs (request for quotes) in a short period of time. This can place extreme pressure on the estimator doing the task who may tend to produce estimates and quotations “too quickly” -- resulting in errors such as overbidding, underbidding, and/or losing awards from excessive time delays – all which increase costs and reduce profits. Learn about estimating problems.
Studies, as well as feedback from our customers and prospects, have demonstrated for decades that the “majority of suppliers” fail to use formal quoting software to generate customer quotations. Most estimators develop estimates using “manual or home-grown” methods with labor time estimated mainly on previous experience or from reviewing “similar to” parts. These estimating methods can be extremely time-consuming while producing errors and inconsistent results – in comparison to using professional software.
Database driven cost estimating software, such as Costimator, contains a wealth of manufacturing data, time tested cost models and time standards. These and many more features, standardize how estimators develop their estimates and quotations enhancing consistency, while reducing errors and excessive reviews by other company personnel. Quickly responding to RFQs with consistently accurate information can be the difference between success and failure for a part supplier.
Strategically Reducing OEM Part and Product Costs with Estimating Software
Cost estimating software also provides OEMs with the manufacturing knowledge they need to identify and understand the cost drivers in the products they design, manufacture and procure. Being able to break down and quantify what a product should-cost throughout the product development life cycle allows organizations to implement uniform and predictable costing strategies. Estimating using the Costimator software, also affords a wide selection of cost reduction strategies, such as product cost management, DFM (design for manufacture), reverse engineering, and more.
Explore Costimator cost estimating software and learn the benefits of each:
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