With record livestock prices and high processing costs compared to our global competitors, the role of accurate product costing for Australian processors is more critical than ever. And whilst a focus on cost efficiency is important, an accurate understanding of product costing allows processors to identify opportunities to maximise value from every carcase.
Advanced costing systems can provide the accuracy and granularity required to drive real product mix optimisation and reduce supply chain costs. Costing variations can lead to significant opportunities to optimise carcase cut combinations, identify unprofitable customers, giving considerable savings without investing in new equipment or personnel.
BMA and 3C Software delivered a webinar on managing and minimising costs and maximising value for meat processors, which included a panel Q&A featuring AMPC CEO Chris Taylor.
Our partners demonstrated an advanced costing system in real-time, provided various scenario modelling cost opportunities based on leading US meat processors with best-of-breed costing practices, including:
- How to maximise the value of a carcase.
- Reduce margin leakage across the value chain.
- How to manage input cost variables and increase profits.
- Managing yield cut patterns for better supply and processing.
- Why co-and bi-product valuation is fundamental to accurate product costing.
- Measuring cost-to-serve and full supply chain costs.
- Cost-based pricing.
- Matthew Smith - Costing and profitability expert, President and CEO at 3C Software
- Chris Taylor - CEO, Australian Meat Processor Corporation (AMPC)
- John Walker - Director, BMA Group
- Chair - Kevin Simon, Director, BMA Group