Product Analysis

Cost Analysis & Optimization:

Profit margin is an important attribute to product success. Potential activities for improving profit margins include:

• Establishing and meeting initial product cost targets
• Product cost reduction opportunities for existing products

  o reformulation
  o ingredient modifications
  o production efficiencies

• Product line consolidations

AA&T evaluates product ingredients and manufacturing efficiencies to determine where high costs are concentrated.

AA&T then determines the most beneficial way to develop cost effective new products or reduce existing product costs, without compromising product integrity or customer satisfaction.

AA&T utilizes sensory testing to support consumer acceptance of product changes.

AA&T also conducts product line consolidations, as required, due to product line similarities and over-extended product lines.

Key Benefits:

• Anticipated profit margins are met for new products—appropriate product costs and manufacturing efficiencies are delivered
  
  
• Improves profit margins realized through reformulation of existing products and implementation of manufacturing cost efficiencies
  
  
• Increases revenue with improved customer satisfaction
  
  
• Maximizes efficiencies and minimized inventories i.e. ingredients, SKU’s, packaging materials, after consolidations
  
  
• Lowers manufacturing costs from decreased change-over times and consolidated processes