Restoring Cost Transparencey

Applying Cost Regression Analysis to the Consumer Packaged Goods Industry

Consumer packaged goods companies are facing a paradox: an abundance of increasingly individualized products is driving top line growth, while the complexity of such products is obscuring cost transparency. Adding a new product size, formulation or line extension adds cost—but exactly how much?

Companies have introduced an unprecedented level of raw material and packaging complexity into their procurement and manufacturing processes — and made managing upstream costs significantly more difficult.