Margin by Product Overview

📕 Description

Margin by Product computes the margin on material from each mix design/product. It ranks products based on profitability to help you act on opportunities to improve underperforming products.

🎯 Management Questions

• Which products are currently delivering the highest and lowest margins across the business?
• What are the key drivers of low product margins,  are they primarily due to pricing strategies or material costs?

• Which products and plants present the greatest opportunities to improve margin performance?

💰 Opportunities

Opportunities are calculated based on the margin on materials generated from each individual product versus the business average.

Opportunity values vary based on the date range, plants, customers and market segments selected. 

Learn more about how we calculate opportunities here.

❓FAQ

1. Why are all the products classified as <=800 in the MoM Unit Rate ($) by Grade widget?

This occurs when the grade/strength field in your database is not populated. C60 will default to a grade of 0 which will prevent users from comparing revenue, cost and margin of products by its grade. 

2. The material cost of my product in C60 does not match my source data?

Depending on the operating system in use (primarily the dispatch system), C60 uses various methods to calculate the material cost. 

Command Series - C60 uses the cost of mix at the date of ticketing/production. This data field is provided by Command. If the value of the cost does not match the current cost of a product in your system is it likely due to the cost of the product changing overtime with the altering of raw material costs at that location after the date of production. 

Command Cloud - C60 calculates the cost of the product by using the raw material quantities in the recipe and the current raw material unit costs.

Sysdyne - Similar to Command Series, Sysdyne provides the unit cost of each product at the date of production. 

Jonel - C60 calculates the cost of the product by using the raw material quantities in the recipe and the current raw material unit costs.

Integra - C60 uses the latest cost of the product from the product maintenance module within Integra.

Command Marcotte - Marcotte provides C60 with the total cost of all products on a ticket. C60 then uses this value to divide by the quantity of the primary product to display the unit cost of the mix design. 

📊 Data Inclusion

✅ Data Requirements