Product Cost Management Software

Product cost management software estimates and predicts the costs and profitability of products over their entire product life cycle. The software is used to maximize the profit of products by making a product the most cost-efficient.

Analytics tools identify the major cost drivers based upon the technologies, machines, materials, and labor employed. It uses historical data and current data as benchmarks for estimating and predicting future costs. It tracks actual costs versus predicted costs.

Companies that develop and manufacture products use the software to ensure a product meets its cost and profit goals. Within an organization, product cost management software is used by research, product development, cost engineering, purchasing, and sales teams.

The software uses machine learning and AI, offering analytical tools that are deployed in the concept, engineering and development, and the manufacturing, commercial production stages of a product.

What is Product Cost Management Software?

Product cost management software estimates and predicts the costs and profitability of products over their entire product life cycle. The software is used to maximize the profit of products by making a product the most cost-efficient.

Analytics tools identify the major cost drivers based upon the technologies, machines, materials, and labor employed. It uses historical data and current data as benchmarks for estimating and predicting future costs. It tracks actual costs versus predicted costs.

Companies that develop and manufacture products use the software to ensure a product meets its cost and profit goals. Within an organization, product cost management software is used by research, product development, cost engineering, purchasing, and sales teams.

The software uses machine learning and AI, offering analytical tools that are deployed in the concept, engineering and development, and the manufacturing, commercial production stages of a product.

Product Cost Management Software Features

• Compares design options for feasibility and cost-effectiveness
• Cost simulation for different manufacturing technologies, materials, suppliers, and labor markets
• Value analysis
• Aid in procurement and make vs. buy parts decisions
• Cost targeting analysis
• Price targeting analysis
• Capital asset justification
• Cost-volume-profit analysis
• Breaks down annual costs, revenues, and cash flows
• Calculates internal rate of return, net present value, and payback periods
• Records and shares product cost information
• Collaboration tools across functions and suppliers
• Dynamic dashboards, real-time modeling, and reporting
• Cloud and on-premises options

Product Cost Management Software Comparison

Consider the following when purchasing product cost management software:

• Scope: Are you also in the market for product lifecycle management software? If so, PLM software often includes a product cost management component. However, its features may not be as robust or extensive as a stand-alone product cost management product.
• Scalability & Versatility: Ensure your selection has the scale and features to support your company’s growth and industry.

Pricing Information

Product cost management software is tailored to a client’s needs, pricing depends on the features selected and scale of the operation, requiring a vendor quote.