Quotation Costing

For manufacturing companies, the most important consideration after product innovation and quality is to win business in the competitive global market place. Detailed knowledge on product cost and product profitability is indispensable for creating competitive quotes.

The quotation costing phase is where money is made and lost. If you estimate your product costs unrealistically low to win an order, you risk financial loss. Just as risky, an over-estimation of costs can result in loss of orders. Because of this quotation costing needs to be quickly prepared, accurate and based on facts rather than opinions.

Quotation costing helps in negotiations with customers by presenting a clear cost structure and plausible breakdown of the product costs

Quotation costing with Teamcenter product costing

Typically, the quotation price will be calculated several years before the start of production, and generally applies to the entire product lifecycle. With the quotation costing all relevant variables that determine the costs and product profitability and the company’s strategic objectives are thereby taken into consideration. External development costs and raising capital, as well as technological progress, medium- and long-term productivity can be incorporated within the quotation costing. A successful quotation costing requires centrally managed and easily accessible data. Through the state of the art integration technology you can easily reuse costing relevant data from SAP ERP systems (e.g. material prices, work centers, BOM’s and routings) for calculations within the quotation costing process. This reduces significantly the time and cost to create new quotes and ensures a higher data quality. Quotation costing helps you negotiate with your customers by presenting a clear cost structure and plausible breakdown of the product costs.

Your benefits

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The quotation costing capability in Teamcenter supports you in optimizing your quotation calculation processes to receive more reliable quotes in a significantly reduced time. You can use and explain this data in open-book conversations with the customer’s costs experts to establish your price.