Do you have insight into the different factors that may cause your production cost to fluctuate?
As sales and marketing review how your price points stack up on the grocery shelf, your production managers need to calculate labor, packaging and overhead production costs at the batch level so you can review actual costs by product, formula or production facility over a given time period.
Are you able to calculate materials including labor, packaging and overhead into your production costs to get a true cost at the batch level? With a food manufacturing software you should be able to review actual costs by product, formula or by production facility over any given time. This way you can evaluate the production costs by individual batch, packaging styles or brand group.
Having access to this data offers the opportunity to highlight high-performing brands as well as weed out underperforming brands or recipes.