For those that missed the first of our LinkedIn series looking at barriers to growth, the focus was on Cost of Goods sold, and the potentials headaches that creep in when there are complexities in your operation.

We commenced by gauging how good people’s calculations of this were, which produced a mixture of response, from pretty sketchy, good enough and some that thought theirs was spot on or weren’t sure about what GM was.

After running through some of the basics of CoGs we moved on to exploring when it can become complicated, talking through some real life examples that we have helped our client’s with such as:

• Two ways of sourcing the same product, what if you both buy it and make it?
• Components shared across multiple assemblies
• Multi stage production processes
• Shipping and storage across multiple stock locations
• Costs by batch of goods made
• Supplying products to a 3rd party manufacturer

We closed by having a interactive Q&A where attendees could discuss their individual challenges, and continued the discussion around complexity within the business that may contribute to the CoGs headache.

If CoGs calculations are causing you a headache why not book a chat to talk through how we might be able to solve this.