WHAT DOES THIS PRODUCT OR VARIANT CONTRIBUTE?
Quotation Costing
The products and variants you quote most stay costed in the background, anything else can be costed on request, and existing contracts can be re-costed when the parameters behind them move.
What does this product or variant cost, and what does it contribute?
Three challenges
The price comes back in seconds. What it costs to deliver takes three days and a favour from controlling.
The cost on file is an inventory value
Standard, periodic, at product level. It is not this configuration, at today's prices, with a margin against it.
Old contracts drift
A contract signed two years ago is priced on inputs that have moved since, and nobody knows which ones have stopped working.
How it works
Keep what you quote most costed
The products and variants that actually get quoted stay costed in the background against current prices and rates, so the answer exists before the question is asked.
Cost the rest on request
Quote with the margin visible, and keep the basis
A configurable product has more variants than anyone would ever cost. Five representative ones are kept costed and current, and any configuration between them is placed on the continuum they define — with its margin, and with its nearest alternatives beside it.
Five costed Kept current in the background
The rest inferred Placed between the ones that are costed
Margin, not just price At the level a quote is actually written
In a plant this is a bill of materials and a routing. In a recipe house it is a recipe and its process steps.
The products and variants you quote most, kept current in the background.
Variant explosion on demand PLP triggers the explosion in the source system and costs the variant structure.
Representative variants Cost the few that define the range, infer the rest along the continuum.
Margin per product and variant Visible at the level a quote is written.
Contract re-costing Existing agreements re-costed against moved parameters, so renegotiation has a basis.
An auditable basis The cost basis stored with the quote and reconstructable later.
What it needs
The shared line, plus: volume and price conditions, and the margin thresholds the business works to.