Product Cost Management: Considerations in the Calculation of Landed Product Cost

In the course of our business practice, we at Siemens PLM Software work with a variety of unique manufacturing companies from different industries. Each company we work with does so with the intent of managing their product cost to reduce the spend on purchase parts and to ensure price competitiveness of the parts they bring to market. We at Siemens PLM Software often come across organizations that have developed best practices that provide them with an advantage. One of the key areas in which we see a wide gap in understanding is in the area of what is or what should be considered in the calculation of a “landed” product cost.

Many companies have the ability to conduct sensitivity on the optimum place to manufacture products on a global basis (whether for purchase or production in their own facilities). But, there are often missing considerations of factors and drivers that impact the movement of parts (landing) from one location to another.

This session will focus on the use of Teamcenter Product Cost Management as a foundation tool in the calculation of landed product cost.

John Monica, of the Siemens Portfolio Development Group and Jeff Stines, from the Siemens Presales Organization, will share with you a live demonstration of the interaction between our centralized cost system and additional business intelligence tools that are samples of what we consider as best practice examples of companies effectively managing total landed cost.