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| Case Study #5 customer is held to a lost-leader scenario of contracted price with a very large customer on one high volume part. Rising raw material costs, supplemental scrap surcharge assessments and cost accountants were eating them up. | ||
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| Hastings Machine Company produces a large volume and very diverse number of products for this particular customer. Proper data analysis recommended adjusting product margins and corresponding product mix to achieve amiable cost accounting numbers.
The impact resulted in unchanged revenue numbers, but a much better and easily digestible cost structure for the high volume part. This resulted in a pleased and more satisfied customer with happy cost accountants. |
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