Managing product prices effectively is needed more than before in today’s supply chains. Digital pricing in SCA Planner meets this critical need. It works across the supply chain and ensures price control and audits. With SCA Planner pricing, there is greater reliability in price management. tight integration into the purchasing agreement and automated price auditing. As a result, pricing reflects the supply chain dynamics in real time for changes in items, commodities (for formula purchases), sales etc. The payback is quick with savings in price approval process, reduction in invoice errors, lower accumulated variances with timely price updates and productivity improvement in the supply chain.

Restaurant companies rely on COGS forecasts to protect their margins. However, given the dynamics of commodities, sales, product mix and items, COGS forecast reliability is poor resulting in high restaurant margin risks. With our real-time COGS forecast, chains can analyze more dynamic scenarios, with more accurate commodity and inventory data, and immediately see the impact on cost of goods and margins. This more reliable approach improves store level and investor level reporting and COGS forecasting.

Features:

SCA Planner Capability

Business Impact

Digital price management – price submission, approvals and audits

·         Improve reliability, timeliness of pricing 

·         Reduce workload for your purchasing and supplier teams

Pricing based on contract type – FOB, Formula or any other basis

·         Improve contract, process compliance,

·         Establish collaborative process with suppliers

Generate COGS forecasts using the latest information – demand forecast, product mix, supplier pricing, commodity futures and more

·         Reduce COGS Forecast error by 90%

·         Automate forecast process

Realtime reporting – savings tracking, trends against commodities etc.

·         Provide real-time visibility to stakeholders

Advanced analysis of supplier pricing, proposals etc. with component based benchmarking, basis driven costs

·         Improve negotiated outcomes

What-if analysis of business factors – commodities, volumes, product mix, new items etc.

·         Better planning and response to business factors

Benefits:

  • Control payments against approved pricing; eliminate over-under billing
  • Increase margin reliability at stores with more accurate forecasts
  • Improve cashflow with reduced forecast errors
  • Increase productivity of the procurement team
  • Improve speed of response with digital process

A More Reliable Approach

Based on years of food industry experience, our COGS Forecast solution helps finance managers understand the drivers for food and paper cost changes and analyze what-if scenarios. Our COGS Forecast leverages real-time updates to provide:

  • Automated COGS variance reporting on the impact of product mix, volume, commodities and other factors
  • Integrated data from contracts, supplier costs, commodities, margin initiatives and inventory
  • Analysis of the drivers of food and paper cost changes, and % of COGS at risk
  • COGS reporting by region or franchisee.

Learn More:

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