COST MANAGEMENTIn Development

Price It Right, Track It Tighter

Material Management & Material Costing

Material is where programs quietly bleed margin. Long lead times, sole-source suppliers, and furnished material create cost exposure that spreadsheets cannot keep up with. This solution forecasts material cost from historical actuals and market signals, tracks cost at the BOM level against baseline, and flags variance before it lands in the actuals, all reconciled with the ERP.

POWERED BY EMBEDDED PARTNERSHIPS

SAP S/4HANA

BOM, procurement, and material ledger integration

THE PROBLEM

Where Material Cost Gets Away From You

Material cost forecasting lives in spreadsheets

Forecasts are built by hand from last year's numbers and stale quotes. They miss market movement and go out of date the moment they are published.

BOM-level variance is caught late

Cost variance shows up in the actuals after the fact. Without BOM-level tracking against baseline, there is no early signal that a build is running over.

Long-lead and furnished material lack accountability

Long-lead procurement and government or customer furnished material are tracked informally. Commitments and accountability are hard to reconstruct.

HOW IT WORKS

Forecast, Track, Reconcile

Material cost is planned, tracked, and reconciled against the ERP at the level the BOM is built.

01

Forecast

Forecast material cost from historical actuals and market data, with AI assistance rather than static spreadsheet math.

02

Track at BOM Level

Track cost at the BOM level with real-time variance against baseline as the build progresses.

03

Manage Long-Lead & Furnished

Forecast long-lead procurement, track commitments, and maintain accountability for furnished material.

04

Reconcile

Reconcile subcontractor material cost flow-down and integrate the result with the ERP material ledger.

WHAT WE HAVE BUILT

Capabilities in the Solution

Material Cost Forecasting

AI-assisted forecasting from actuals and market signals.

  • AI-assisted material cost forecasting from historical actuals and market data
  • Scenario forecasting for volatile commodities
  • Forecast-to-actual variance tracking

BOM-Level Tracking

Cost tracking at the level the product is built.

  • BOM-level cost tracking with real-time variance against baseline
  • Roll-up from component to assembly to program
  • Early-warning signals on cost drift

Procurement & Accountability

Long-lead forecasting and material accountability.

  • Long-lead procurement forecasting and commitment tracking
  • Furnished material accountability and reporting
  • Subcontractor material cost flow-down and reconciliation
FREQUENTLY ASKED QUESTIONS

Common Questions

What does Material Management & Material Costing do?
It forecasts material cost, tracks actuals at BOM level, and analyzes variance against baseline for organizations managing complex BOMs, long-lead procurement, and regulated material flows, integrated with the ERP.
How does BOM-level cost tracking work?
Cost is tracked at the level the product is built, with real-time variance against baseline that rolls up from component to assembly to program, so cost drift is caught early rather than in the actuals.
Does it handle furnished material and subcontractor flow-down?
Yes. It maintains accountability and reporting for furnished material and reconciles subcontractor material cost flow-down as part of the cost picture.
Does it integrate with SAP?
Yes. It is built to reconcile with the ERP, including SAP BOM, procurement, and material ledger data.
IN DEVELOPMENT

See It in Your Environment

Material costing is being built against real BOM and procurement requirements from complex programs. Talk to us about early access.