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MSME Sector

Control the Product Cost and improve your profits

Recently we were doing our Cloud based ERP product ( demo at a prospect’s place at Bangalore. He is an established company of 30+ years and has reputed clientle. As part of the product demo, we took actual product data, purchase price with bill of materials (BOM). We completed the  “Finished Goods production reporting” and our prospect had the biggest worry of the day and he was struggling to understand what happened.

Because the cost of his production was nearly 1.75 times more than his selling price. The cost sheet they were referring was nearly 3 years old.

Today, if we ask any SME customer randomly on what is the actual cost of the material he purchases or cost of the product that he manufactures, there is 80% chance that he would give an old price and he might not be knowing the real cost.

This is a common scenario is most of the production units unless they monitor every cost and expenses closely.

“Most of the business owners are not able to identify the exact cost of Finished goods or their purchased materials. Because the age old software that they use doesn’t have the capability to handle these requirements.”

Below we are presenting a scenario of how the Finished goods costs can be deduced based on multiple factors.

Finished Goods Cost breakups

FG Costing Details

FG Costing Details

In, we use weighted moving average costing method that averages out the Purchase cost and finished goods reporting, so that there is no conflict on the costing. These details are tightly integrated with Financial reporting.

AcTouch Technologies is a start up company based in Singapore with its development centre at Bangalore, India. We focus on SMEs with our cloud ERP solutions. Today many SMEs of USD 100K to 10 Million are depending on us Company Founders have Management and Engineering degrees from prestigious colleges like INSEAD Business School France, NUS Singapore, BITS Pilani etc. Prior to starting this company, Founders have worked for 20+ years in large MNCs & Indian IT Big companies (Infosys Technologies, Misys, Thomson Reuters etc) and managed multi-million dollars of Software business heading APAC Regions.

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